Seminar

Status of L.P.G in India

Liberalization
The

1990s saw the emergence of liberalisation. Involved the lifting of government controls, permits, licenses and allowing competition to play its role in the economy. Allowing private enterprises, including Multinational Corporations (MNCs), to operate in an area hitherto monopolized by the Government of India.

Benefits of Liberalization
Increase the foreign investment. Increasing the foreign exchange reserve. Increase in consumption. Control over price. Check on corruption.

Limitation of liberalization
Increase

in unemployment. Loss of domestics unit. Increase dependence on foreign nation. Unbalance development.

Privatization
Its

is the process of transferring of ownership of a business, agency or public service from the government to the private sectors.

Advantage of privatization
Increase

in competition. Increase in responsibility. Reduction in economic burden government. Increase the industrial growth. Increase the foreign investment. Reduction in public sectors.

of

Limitation of Privatization
Industrial

sickness. Lack of welfare. Increase in inequality. Problem in financing. Increase in unemployment. Ignores the national importance. Ignores the weaker sections.

Globalization
Increasing

unification of the world's economic order through reduction of such barriers to international trade as tariffs, export fees, and import quotas.

Merits of globalization

Discourage restrictive form of governance. There is an International market for companies and for consumers there is a wider range of products to choose from. Increase in flow of investments from developed countries to developing countries, which can be used for economic reconstruction. Greater and faster flow of information between countries and greater cultural interaction has helped to overcome cultural barriers. Technological development has resulted in reverse brain drain in developing countries.

Demerits of globalization
The outsourcing of jobs to developing countries has

resulted in loss of jobs in developed countries. There is a greater threat of spread of communicable diseases. There is an underlying threat of multinational corporations with immense power ruling the globe. For smaller developing nations at the receiving end, it could indirectly lead to a subtle form of colonization.

Conclusion
India gained highly from the LPG model

as its GDP increased to 9.7% in 2007-2008. In respect of market capitalization, India ranks fourth in the world. But even after globalization, condition of agriculture has not improved. The share of agriculture in the GDP is only 17%. The number of landless families has increased and farmers are still committing suicide. But seeing the positive effects of globalization, it can be said that very soon India will overcome these hurdles too and march strongly on its path of development.

Presented by
Shashi

Shekhar Basnet (MBA/10/036) Prabin Boruah (MBA/10/018) Dhananjay Das (MBA/10/024) Ganesh Das (MBA/10/025)