Download App

Liberalisation, Privatisation And Globalisation — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsLiberalisation, Privatisation And Globalisation6 Marks
Question
What is new economic policy? Briefly explain it.
✓

Answer

New economic policy refers to adoption of Liberalisation, Privatisation and Globalisation (LPG) which aims at rendering the economy more efficient, competitive and developed.ELEMENTS OF NEW ECONOMIC POLICY:
  1. Liberalisation: It means to free the economy from the direct and physical control imposed by the government.
  2. Measures adopted for Liberalisation:
  • Abolition of industrial licensing.
  • De reservation of production areas.
  • Expansion of production capacity.
  • Freedom to import capital goods.
  1. Privatisation: It refers to general process of involving the private sector in the ownership of management of state owned enterprises. It implies partial or full ownership and management of public sector enterprises by the private sector.
  2. Measures adopted for Privatisation:
  • Contraction of public sector.
  • Disinvestment of public sector undertakings.
  • Selling of shares of public enterprises.
  1. Globalisation: It means integrating the economy of a country with the economies of other countries under condition of free flow trade and capital and movement of persons across borders.
  2. Measures adopted for Globalisation:
  • Increase in equity limit of foreign investment.
  • Partial convertibility of Indian rupees.
  • Long-term trade policy.
  • Reduction in tariffs.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "6 Marks Question" from Liberalisation, Privatisation And Globalisation→Liberalisation, Privatisation And Globalisation — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Briefly explain any three negative impacts of New Economic Policy in India.OR
Give the negative impact of economic reforms since 1991.
→
How will you know whether a worker is working in the informal sector?
→
Evaluate the various factors that led to the rapid growth in economic development in China.
→
Throw light on the two recent reports published on the Indian economy.
→
What is sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to GDP of an economy? Comment.
→
Match the following:
1.
Prime Minister
A.
Seeds that give large proportion of output.
2.
Gross Domestic Product
B.
Quantity of goods that can be imported.
3.
Quota
C.
Chairperson of the planning commission.
4.
Land Reforms
D.
The money value of all the final goods and services produced within the economy in one year.
5.
HYV Seeds
E.
Improvements in the field of agriculture to increase its productivity.
6.
Subsidy
F.
The monetary assistance given by government for production activities.
→
Though public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy’s resources. Discuss the usefulness of public sector undertakings in the light of this fact.
→
Explain the importance of agricultural sector for the Indian economy.OR
Why is agriculture sector deemed to be the backbone of Indian economy?
→
Is there any relationship between unemployment and poverty? Explain.
→
Explain the three dimensions of the government's approach to the poverty reduction in India.
→