Tag: the government and economic development

Prior to the 1991 economic liberalisation,India was a closed economy due to the average tariffs exceeding 200 percent and the extensive quantitative restrictions on imports. Foreign investment was strictly restricted to only allow Indian ownership of businesses. Since the liberalisation, India's economy has improved mainly due to increased foreign trade.

Following are highlights of the Liberalisation, Privatisation and Globalisation Policy in India :-

• Foreign Technology Agreements
• Industrial Licensing
• Abolition of License-Permit Raj

Aryabhata was the first Indian Satellite named after the great Indian astronomer Aryabhata. It was launched on 19 April 1975. It was built by Indian Space Research Organization and was launched from Kapustin Yar, a Russian rocket launch station.

The Government of India took some measures in 1991 for rapid industrialisation. The measures include:-

• Abolition of industrial licensing
• Allowing foreign investment
• Encouragement to private sector
• Co-existence of public and private sectors.

The then Prime Minister Jawaharlal Nehru gave high priority to agriculture, irrigation and power project after India's independence.

The term Liberalisation means movement towards a free market system. It is also known as the withdrawal of regulation and restrictions of private sectors. Private sectors are encouraged to enter into core industries that are reserved for the public sector. It is one of the notable aspects of the economic reforms 1991 of India.

 Village economy was badly affected. The village panchayats were deprived of their rights. The introduction of the concept of private property in land turned land into a market com­modity. Changes came in social relationships. New social classes like the landlord, the trader, the money-lender, and the landed gentry shot into prominence. The class of rural proletariat, the poor peasant proprietor, the sub-tenant and the agricultural labourer multiplied in number. The climate of co-operation gradually gave place to the system of competition and individualism; the pre-requisites for the capitalist development of agriculture were created.

Tarapur Atomic Power Station (T.A.P.S.) is located in Tarapur, Maharashtra, India. It was constructed initially with two boiling water reactor (BWR) units by Bechtel and GE under the 1963 123 Agreement between India, the United States, and the International Atomic Energy Agency (IAEA).

Privatisation can refer to the act of transferring ownership of specified property or business operations from a government organization to a privately owned entity, as well as the transition of ownership from a publicly traded, or owned, company to a privately owned company. For a company to be considered privately owned, it cannot secure funding through public trades on a stock exchange.