Considering the difficulties pertaining at that time government decided to follow LPG Model. The Growth Economics conditions of India at that time were not very good.
Potential benefits[ edit ] The service sector is probably the most liberalized of the sectors. Liberalization offers the opportunity for the sector to compete internationally, contributing to GDP growth and generating foreign exchange.
As such, service exports are an important part of many developing countries' growth strategies. India's IT services have become globally competitive as many companies have outsourced certain administrative functions to countries where costs are lower.
Furthermore, if service providers in some developing economies are not competitive enough to succeed on world markets, overseas companies will be attracted to invest, bringing with them international best practices and better skills and technologies. Some argue foreign providers crowd out domestic providers and instead of leading to investment and the transfer of skills, it allows foreign providers and shareholders "to capture the profits for themselves, taking the money out of the country".
This is also supported by the anthropologist Trouillot who argues that the current market system is not a free market at all, but instead a privatized market IE, markets can be 'bought'. Other potential risks resulting from liberalisation, include: Risks of financial sector instability resulting from global contagion  Risk of environmental degradation  Risk of a debt spiral due to decreased tax revenue among other economic problems oftentimes linked to IMF restructuring though the state government in Kansas is currently encountering this issue.
For example, according to the anthropologist Lilu Abu-Lughod we see increased gender inequality in new markets as women lose labor opportunities that existed prior to market liberalization. However, researchers at thinks tanks such as the Overseas Development Institute argue the risks are outweighed by the benefits and that what is needed is careful regulation.
Yet such concerns could be addressed through regulation and by a universal service obligations in contracts, or in the licensing, to prevent such a situation from occurring.
Of course, this bears the risk that this barrier to entry will dissuade international competitors from entering the market see Deregulation. Examples of such an approach include South Africa's Financial Sector Charter or Indian nurses who promoted the nursing profession within India itself, which has resulted in a rapid growth in demand for nursing education and a related supply response.The economic liberalisation in India refers to the changes and reforms, initiated in , of the country's economic policies, with the goal of making the economy more market- and service-oriented, and expanding the role of private and foreign investment.
IT Industry in India after Liberalization 1. A notable turning point in the Indian software and IT industries policy environment was when Shri Rajiv Gandhi became PM in The major policy reforms were to recognize software as an industry to invest and make it eligible for incentives as other domestic industries, reducing import tariffs.
After liberalization, India became the second world of development and became the 7th largest economies. It contributed trillion in the world’s GDP. Dr. Manmohan Singh, the former finance minister, opened the way for a free economy in the country which led to the significant development of the country.
The economic liberalization in India initiated in refers to the economic liberalization of the country’s economic policies, with the goal of making the economy more market oriented and expanding the role of private and foreign investment.
India’s economic reform since has been catalyst in shaping the performance of the economy. No doubt the economy has been brought to a higher growth trajectory and minimized many of the apparent inefficiencies that were persistent before the. Aug 05, · Marketing strategies of firms have changed drastically in the recent years.
If you take into account the period before the reforms in comparison to the present scenario, there is a vast difference between marketing strategies of firms.
The period before was a one in which the seller was the king, the consumer.