abhishreshthaa
Abhijeet S
LIBERALIZATION OF INDIAN ECONOMY
Since the start of liberalization of its economy in 1991, India has been going through an epochal transformation into one of the world’s fastest growing economies. Its gross domestic product rate was picked up from 1.3 % in 1191 to 1992 to 7.8 % in 119-1997 and despite a global slowdown, moved up from 4.4% in 2000-01 to 5.6% in 2001-2002.
Its GDP for 2002-2007 is currently targeted at 8%. New investment opportunities for 2002-2007 total sum of $1.5 trillion spread over the various sectors such as agriculture, bio-technology, communications, electricity, financial services, manufacturing, mining, trade and transport.
Financial liberalization consists of 3 sets of measures:
1. to open up a country to the free flow of international finance.
2. to remove controls and restrictions on the functioning of domestic banks and other financial institutions so that they get properly integrated as participants in the world financial markets.
3. To provide autonomy from the government to the central bank so that its supervisory and regulatory role vis-à-vis the banking sector is associated from the political process of the country and hence from any accountability to the people.
4. To ensure that not all these measures are immediately contemplated or demanded but they represent the ultimate goal of financial liberalization which may be ushered in by stages.
Since the start of liberalization of its economy in 1991, India has been going through an epochal transformation into one of the world’s fastest growing economies. Its gross domestic product rate was picked up from 1.3 % in 1191 to 1992 to 7.8 % in 119-1997 and despite a global slowdown, moved up from 4.4% in 2000-01 to 5.6% in 2001-2002.
Its GDP for 2002-2007 is currently targeted at 8%. New investment opportunities for 2002-2007 total sum of $1.5 trillion spread over the various sectors such as agriculture, bio-technology, communications, electricity, financial services, manufacturing, mining, trade and transport.
Financial liberalization consists of 3 sets of measures:
1. to open up a country to the free flow of international finance.
2. to remove controls and restrictions on the functioning of domestic banks and other financial institutions so that they get properly integrated as participants in the world financial markets.
3. To provide autonomy from the government to the central bank so that its supervisory and regulatory role vis-à-vis the banking sector is associated from the political process of the country and hence from any accountability to the people.
4. To ensure that not all these measures are immediately contemplated or demanded but they represent the ultimate goal of financial liberalization which may be ushered in by stages.