LIBERALIZATION
Liberalization can be defined as a easing of previous government restrictions in social and economic policy. Liberalization is basically deregulating the government control over the economy & make the market free for everyone to trade.
Measures undertaken by the Government of India for liberalization
Open economy for international trade and investment
Deregulation
Liberalisation of tax reforms
Inflation controlling measures partial or full privatisation of government institutions and assets greater labour market flexibility
PRE-LIBERALIZATION PHASE
The era between 1980-1990,i.e., the scene pre-liberalization was unfavourable in India. The government wanted a closed economy. The rupee was inconvertible and high tariffs and import licensing prohibited foreign goods reaching the market. The setting of India was made in such a way that the firms required licences to invest and develop.
Around 131 companies were incorporated during this period using a total investment of Rs 1685728.5 million. The industries that majorly emerged during this period were banks, financial services, computer software, trading, pharmaceuticals & infrastructure. There was very slow growth of economy in this era.
List of few companies incorporated
Jindal Stainless Ltd.
Gujarat Themis Biosyn Ltd.
H S C C (India) Ltd.
Haldia Petrochemicals Ltd.
Harpartap Steel Ltd.
Himachal Pradesh State Civil Supplies Corpn. Ltd.
Hindustan Fluorocarbons Ltd.Vijaya Bank
Kalpataru Power Transmission Ltd.
Zee Entertainment Enterprises Ltd.
Gillette India Ltd.
Kajaria Ceramics Ltd.
Aban Offshore Ltd.
Agro Tech Foods Ltd.
Aurobindo Pharma Ltd.
Reliance Capital Ltd.
Videocon Industries Ltd.
3M India Ltd.
Shalimar Works (1980) Ltd.
South Eastern Coalfields Ltd.
Southern Pesticides Corpn. Ltd.
Steel & Industrial Forgings Ltd.
POST-LIBERALIZATION PHASE
The era between1991-2000 marked Indian foreign reserves worth 1 billion USD when PV Narasimha Rao became the prime minister. After he left the office India had approximately 150 billion USD as foreign reserves. The FDI(Foreign Direct Investment) began to grew in this era. He commenced economic reforms, which converted India into economic powerhouse. The economic process speed up in this era.During this period 118 companies were incorporated according to the data collected on prowess. This period saw a major rise in the investment made around Rs 7182416 million. The major incorporations being banks, financial services, computer software, trading, pharmaceuticals, infrastructure & new industries like power sector, consultancies, etc.
List of few companies incorporated
Mphasis Ltd.
Adani Enterprises Ltd.
Credit Analysis & Research Ltd. A I A Engineering Ltd.
Kolte Patil Developers Ltd.
Jyothy Laboratories Ltd.
Oil & Natural Gas Corpn. Ltd.
J S W Steel Ltd.
Jubilant Foodworks Ltd. Kingfisher Airlines Ltd.
Sobha Developers Ltd.
Welspun Corp Ltd.
Fortis Healthcare Ltd.
Major Industries and Main Products and Services
INDUSTRY GROUP
MAIN PRODUCT/SERVICES
1
Air transport services
Airline passenger services
2
Business consultancy
Business services
3
Computer software
Software services
4
Electricity Generation
Thermal, hydro and different electricity energy
5
Housing construction
Construction of building(Residential)
6
ITES
Information technology enable services/BPO
7
Metal products
Different articles of base metals etc.
8
Other asset financing services
Asset financing services
9
Misc. manufactured product
Misc. manufactured product
10
Other fund based financial services
Securities investment services
11
Other financial services
Financial services including leasing
12
Other misc. services
Services
13
Processed foods
Fruits & vegetable products, juices
14
Securities broking
Securities broking services
15
Steel
Semi-finished steel
16
Telecommunication services
Telecommunication and internet services
17
Trading
Trade in manufactured product
SUNRISERS PHASE
The era between 2001- till now have seen 43 companies incorporated with a total investment of Rs 1408800 million. The major industries were the banks & financial services. Also the entry of media & telecommunication has boosted the economic growth. The companies were incorporated with a total investment of Rs 1408800 million. Business consultancy, financial services and trading continues to contribute but in this period we saw some new players(i.e. media broadcasting, retail trading, road & ship transport infrastructure). They are contributing a major part in current Indian economy. It was possible only because of liberalization so FDI’s and FII’s were able to invest in India. This era showed a faster increase in FDI’s and FII’s.
List of few companies incorporated
Air India Air Transport Services Ltd.
Air India Engg. Services Ltd.
Air India Ltd.
Air Kerala International Services Ltd.
Ajmer Vidyut Vitran Nigam Ltd.
Torrent Power Ltd.
Capital First Ltd.
K E C International Ltd.
P C Jeweller Ltd.
Bharti Infratel Ltd.
Bajaj Auto Ltd.
Tribhovandas Bhimji Zaveri Ltd.
L & T Finance Holdings Ltd.
Kirloskar Oil Engines Ltd.
Alembic Pharmaceuticals Ltd
Major Industry groups and Main Products and Services
INDUSTRY GROUP
MAIN PRODUCT/SERVICES
1
Business consultancy
Business & renting services
2
Commercial complexes
Real estate infrastructure services
3
Electricity generation
Thermal, hydro and other electricity energy
4
Infrastructural construction
Construction of road, Bridge, tunnel etc.
5
Media broadcasting
Television broadcasting media
6
Misc. manufactured articles
Misc. manufactured articles
7
Other financial services
Financial services including leasing
8
Other construction & allied activities
Construction & allied activities
9
Retail trading
Retail trade
10
Road transport infrastructure services
Toll revenue
11
Shipping transport infrastructure services
Ports
12
Trading
Trade in manufactured product
CONCLUSION
The liberalization has transformed the economy which has reformed and increased the entire growth of the economy. Because of the various economic reforms the industries will grow in the coming years & help in the development of the country. We also analyzed that Service sector forms a major part of India’s GDP. The number of Service Company got increased post liberalization. But for a country to grow a strong manufacturing sector is also needed. So the Govt. of India is encouraging manufacturing sector through taking various measures.
REFERENCES: http://cmie.prowess.com http://en.wikipedia.org http://www.freedomfirst.in
References: http://cmie.prowess.com http://en.wikipedia.org http://www.freedomfirst.in
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