Question

Enlist the changes brought about by Globalisation and Liberalisation in the Indian industrial set up.

Answer 1

• Private companies especially foreign firms are encouraged to invest in sectors earlier reserved for the government including telecom, civil, aviation, etc. 
• Licenses are no longer required to open industries. 
• Foreign products are now easily available in Indian shops. 
• Privatization of public sector or government companies. 
• The government is trying to sell its share in several public sector companies. This process is known as disinvestment. For example Modern Foods. 
• More and more companies are reducing the number of permanent employees and outsourcing their work. 
• Liberalisation and privatization appears to be associated with rising income inequality.