Chapter: 12th Commerce : Chapter 20 : Business Environment : Liberalization, Privatization and Globalization
Liberalization, Privatization and Globalization
BUSINESS ENVIRONMENT
LIBERALIZATION, PRIVATIZATION AND GLOBALIZATION
During 1991, India approached International Bank
for Reconstruction and Development (IBRD), popularly known as World Bank and
International Monetary Fund (IMF) and received $ 7 million as loan to repay the
external borrowings. These international agencies expected India to liberalise
and open up economy by removing restrictions on private sector and remove trade
restrictions between India and other countries.
India agreed to the conditions of World Bank and
IMF and announced New Economic Policy (NEP) which consists of wide range of
economic reforms. This new set of economic reforms is commonly known as the LPG
or Liberalisation, Privatisation and Globalisation model.
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