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.