Presented by:

Hiten Gupta
(50802026)

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
Source: www.economywatch.com
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
Source: www.hindu.com
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
Economic profile of the country was extremely
distressing at the time of independence.

No growth in previous half of the century.

Created unanimity among leaders, that state

must take responsibility of country’s
development

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008

Extensive exploitation of India’s
industry and markets through British
FDI.

Colonialism effectively ruled out any

free development of Indian industry
or of its ECONOMY.

Thus created suspicion among

political leaders & this attitude
shaped Indian policies regarding FDI

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
The Historical setting contd…

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008

The Historical setting contd…

1957-58 -1.2%

1965-66 -3.7%

1972-73 -0.3%

1979-80 -5.2%

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
 In 1991 India was In 2004, India
in deep BOP crisis managed to
and future was generate one of the
uncertain. strongest BOP
position.

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
 7.2
7
6.1

Source: www.economist.com
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
 Indian Foreign Exchange Reserves: a steady rise
after liberalization

Foreign exchange reserves

US$ ( billion)

74.4
54.1
17
2.2

Source:www.rbi.org.in
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
 Foreign Investments after liberalization

Total foreign Investment US $ (million)

15872

8152

5639
5385 6789

Source:www.rbi.org.in
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
Import duty Reduction after Liberalization
150
 Thank You

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008

IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008
IEL, Liberalization of Indian Economy (LMTSOM PATIALA)-2008