m It¶s a Economic structural reforms or a new economic

policy made by Indian government in 1991 for

stabilizing Indian economy and for making economy as
fastest growing economy and globally competitive. ..
m In 1990-91 Government was very low of cash.
m Foreign currency reserves had plummeted to almost $1
billion.
m Inflation had roared to an annual rate of 17 percent.
m Fiscal deficit was very high and had become
unsustainable.
m Foreign investors and NRIs had lost confidence in
Indian Economy.
m ë :- ëiberalization.
m P :- privatization.
m G :- Globalization.
ëiberalization
m o put end on rules / Regulation to control economy
m Open up various sectors of Economy.
 End of license Raj.
 Financial Sector Reformed.
 ax Reform.
 Forex Reform.
 rade Investment Reform.
Privatization
m Privatization of Public Sector Undertaking.
m How?
 ˜isinvestment
 Selling PSU¶s equity to public
ï
 

1. Increased financial discipline 1. Income generated from ˜isinvestment

used to fill Revenue deficit
2. Modernization 2. Privatization of PSU instead of making
Navaratna a Global Player.
3. Increased performance of PSU by

i. Private capital
ii. Managerial techniques
4. F˜I incoming
Globalization
m he term globalization refers to the integration of
economies of the world through uninhibited trade and
financial flows, as also through mutual exchange of
technology and knowledge. Ideally, it also contains free
inter-country movement of labor.
4 Opening up the economy to foreign direct investment.
4 Removing constraints and obstacles to the entry of
MNCs in India.
4 Allowing Indian companies to enter into foreign
collaborations and to set up joint venture.
4 he removal of quantitative restrictions on imports.
m he rate of growth of Gross ˜omestic Rate of India is
increasing.
m he foreign exchange Reserve is increasing every year.
m he cumulative F˜I is increasing every year.
m India controls at the present 45 per cent of the global
outsourcing market with an estimated income of $ 50
billion.
m In respect of Market Capitalization India is in the
fourth position $ 894 billion after the US ($ 17,000
billion), Japan ($ 4800 billion) and China ($ 1000).
India is expected to soon cross the trillion dollar mark.
m As per the Forbes list for 2007, the number of
billionaires of India has risen to 40 (from 36 last
year)more than those of Japan (24), China (17), France
(14) and Italy (14) this year.
Globalization is facilitated via WO
m "
:- World rade Organization.
m


  January 1, 1995
m h    Geneva, Switzerland
m Æ
   153 member states
m
 
   English, French, Spanish
m ˜ 
  Pascal ëamy
m ï   182 million US˜ in 2009.
m ð  625.
m ˜eals with regulation of trade between participating
countries.
m It provides a framework for negotiating and
formalizing trade agreements, and a dispute resolution
process aimed at enforcing participants adherence to
WO agreements which are signed by representatives
of member governments and ratified by their
parliaments.
m he WO has 153 members, representing more than
97% of total world trade and 30 observers, most
seeking membership.
m he WO is governed by a ministerial conference,
meeting every two years; a general council, which
implements the conference's policy decisions and is
responsible for day-to-day administration; and a
director-general, who is appointed by the ministerial
conference.
m It oversees the implementation, administration and
operation of the covered agreements.
m It provides a forum for negotiations and for settling
disputes.
m WO's duty to review and propagate the national trade
policies, and to ensure the coherence and transparency
of trade policies through surveillance in global
economic policy-making.
m Another priority of the WO is the assistance of
developing, least-developed and low-income countries
in transition to adjust to WO rules and disciplines
through technical cooperation and training.
m he WO is also a center of economic research and
analysis: regular assessments of the global trade picture
in its annual publications and research reports on
specific topics are produced by the organization.
m he process of becoming a WO member is unique to
each applicant country, and the terms of accession are
dependent upon the country's stage of economic
development and current trade regime.[
m he process takes about five years, on average, but it
can last more if the country is less than fully committed
to the process or if political issues interfere.
m he WO launched the current round of negotiations,
the ˜oha ˜evelopment Agenda (˜˜A) or ˜oha Round,
at the fourth ministerial conference in ˜oha, Qatar in
November 2001.
m o Enhance equitable participation of poorer countries
which represent a majority of the world's population.
m Agreement on Agriculture (AoA)
m General Agreement on rade in Services (GAS).
m rade-Related Aspects of Intellectual Property Rights
Agreement (RIPs)
m Sanitary and Phyto-Sanitary (SPS) Agreement
m Agreement on echnical Barriers to rade (B)
m Agreement on Customs Valuation
m Major volume of International trade between
˜eveloped Nations.
m Critics claim that the issues of labor relations and
environment are steadfastly ignored.
m Before ëPG we were doing 'Import Substitution'
strategy.
m Result of Import Substitution strategy was that we were
not importing any luxury electronic items , walkman,
VHS players, Stereos, cars etc from Japan, aiwan,
America, etc
m After ëPG, our market was flooded with cheap
electronic goodies. Our trade relations with Japan,
Singapore, ASEAN, & America improved.

m Attracting foreign investors.

m oday you're able to surf internet, buy computer,
mobile phones.
m Have dozens of toothpastes, cars, bikes to select from...

all that thanks to ëPG.