Liberalisation

ll 🙏🏻 नमस्ते 🙏🏻 ll

India 🇮🇳 1991 me ek बहुत बड़ी financial crises se गुजर रहा tha तभी Indian Government ने LPG (Liberalization, Privatisation, and Globalization) ko announce 📢 कया and everything changed. For that change, India took almost more than 10 years to revive. So हमारा इस article 📰 ka topic LPG मैं से first L i.e. Liberalization.

Liberalization को ham ek example से समझेंगे l Aap jab 10 saal ke थे तब आप पर काफी restrictions 🚫 थी l Aapko bahar 🚷 जाना भी banned था l Lekin jaise jaise aap बड़े होते चले गए aapke restriction हटा दिए गए l इस restrictions हटाने के process ko liberalization कहा जाता है l

Definition of Liberalization for India 🇮🇳 is to convert itself from a socialist economy to a free economy. Liberalization means removing all unnecessary controls and restrictions like permits, licenses, quotas, etc. imposed by the government. Liberalization is a change in the economic philosophy of a state. ‘Change’ but कौनसे? Let’s discuss
• A change from a centrally – planned economy to a market-led economy.
• A change from a nationalized system to a privatized system.
• A change in the attitude of the state towards an industrial 🏭 society.
• A change from stricter government intervention to minimal government intervention.

आपको Liberalization actual me kya hota hai yah to समझ में आया होगा l So most important इसको किस methods se implement किया जाता है वह हम देखेंगे l Jisme Entry और Exit यह दो important points आते हैं वह ham discuss करेंगे l

Entry

Liberalization के process मैं socialist economy से free economy मैं Entry करने के लिए हमें Economic Reforms ko introduce करना होता है l जो हम दो type me kar सकते हैं l इस improvement system को IMF (International Monetary Fund) aur World bank ne suggest किया है l

Type 1 – Macroeconomic Stabilization

The crisis-ridden economy needs to stabilize before it can embark on a free economy. The stabilization process is known as Macroeconomic Stabilization. Domestic supply domestic demand को fulfill नहीं कर सकता so हम demand को fulfill karne ke liye needs ko import करते हैं but उससे भी demand fulfill नहीं होती l Attempting to meet this demand is a Macroeconomic Stabilization. Macroeconomic Stabilization is belonging to Demand Management.

How do we manage demand?

1) Inflation Control: – Demand is being curtailed as the economy needs to pursue a monetary policy. 1990-91 मे inflation rate India मे तकरीबन 10.1% था l So government inflation rate to control करने लगी l
2) BOP (Balance of Payment) Adjustment: – If imports are more than exports so we have to focus on controlling or reducing the trade deficit and try to balance the trade between countries. For that, we could use Foreign Loans. In 1991 India ने trade deficit को control करने के लिए Bank of England, Bank of Japan, Bank of Switzerland, World bank aur IMF se loan लिया था और trade deficit ko control किया था l
3) Currency Devaluation: – After the adoption of a free economy, it is necessary to devalue the currency 💱💲 in stages. India ने 1, 3 और 15 July 1991 को Rupees को devalue किया था l
4) Inflation Control, BOP Adjustment, and Currency Devaluation are the solutions for Macroeconomic Stabilization.

Type 2 – Structural Adjustment Programs (SAPs)

The economy, which has been stabilized due to the macroeconomic targets, is being driven on the road 🛣️ to a free economy, and the reforms that are being implemented to speed the reforms are included in the Structural Adjustment Programs. Domestic demand is temporarily fulfilled by macroeconomic stabilization. Now is to the increased supply. SAPs are belonging to supply management.

How do we manage Supply?

1) Trade and Capital Inflow Reforms: – Import करते वक्त लगने वाले restrictions ko sabse पहले हटाना होगा l We have to liberalize import and also focus on less restricted FDI (Foreign Direct Investment) inflow. An import tax was taxed up to 110% on non-agricultural goods which are reduced step by step. In 2007-08 tax was only 10%.
2) Industrial Reforms: – The Process of economic reform requires the hesitation of public enterprises and the expansion of private enterprises by redefining wages. Industries 🏭 are encouraged to become more competitive. 24 July 1991 के new industrial policies से industrial reforms ko शुरुआत हुई l Private industries ko encourage किया गया l MSMEs was triggered.
3) Tax Reforms: – The tax system should be one that drives domestic production and complements Globalization. India की tax system काफी complex थी l Many taxes were levied. Tax percentage भी काफी high थे l 1991 के bad step-by-step tax के rate kam किए जाएं l
4) Fiscal Reforms: – The government has to curb spending and reduce unproductive spending like subsidies. Fiscal Reforms in India were accelerated in 1991 especially after 2003-04 by FRBM Act (The Fiscal Responsibility and Budget Management Act).
5) Monetary Reforms and Financial Reforms: – Monetary regulation should be a stimulus to the economy and should stabilize the economy. Financial aur Banking Reforms ke restrictions ko hata kar reforms को accelerate करना जरूरी होता है l 1991 के बाद various monetary reforms implement किए गए l Monetary Policy Committee ko establish किया गया l CRR और SLR पर होने वाले restrictions ko remove kar दिया गया l Private and foreign banks were allowed to set up the bank 🏦 and restriction to set up the bank was relaxed.
7) Planning Reforms: – Socialist Economy मैं planning centralized होती है l Free economy me planning ko decentralized क्या जाता है l Adoption of Indicative Self-Planning after 1992 strengthening Local by Amendment 73rd and 74th Amendments and establishment of Niti Aayog instead of Planning Commission.
8) Privatization: – Public Enterprise को disinvestment करना जरूरी है l Nationalization facilitates access to the free economy. After 1991, India adopted a policy of reform and disinvestment of public enterprises.

ऊपर दिए गए सभी types SAPs के under आते हैं l

Exit

जिस प्रकार से free economy me enter करने के लिए ‘Entry’ important होती है उसी प्रकार से socialist economy se completely बाहर निकलना important होता है l Issi ko ‘Exit’ kaha जाता है l

Example: – India मैं अभीभी nationalized banks 🏦 ke privatization incomplete है l Nationalized banks loss अभी loss face कर रही है l Indian government ke pass बहुत बड़ा share इन banks मे है l

Unnecessary banks के loss Government of India को face करने पड़ते हैं l So हमें यहां पता चलता hai ki India is not completely free economy.

Conclusion

Hame Liberalization को establish karne के लिए कुछ steps follow करनी पड़ेगी l
Inflation Control > BOP Adjustment > Currency Devaluation > Trade and Capital Inflow Reforms > Industrial Reforms > Tax Reforms > Fiscal Reforms > Monetary Reforms and Fiscal Reforms > Planning Commission > Privatisation.

Hope आपको article 📰 helpful लगा होगा l Economics के concept को समझना काफी important होता है l Kuch concept ko समझना काफी hard होता है l Ham Turtledome.in मे concept ko easily समझते हैं l Privatization को हम अगले article मे देखेंगे l तब तक Happy 😊 Reading………

ll 🙏🏻 धन्यवाद 🙏🏻 ll

– j₹k