Question

“Since the 1990s, the government has followed a policy of liberalisation.” Discuss the changes brought about in the Indian industry as a result of globalisation.

Answer 1

• Private companies, especially foreign firms, are encouraged to invest in sectors earlier reserved for the government, including telecom, civil aviation, power, etc.
• Licences are no longer required to open industries.
• Foreign products are now easily available in Indian shops. 
• Many Indian companies, small and large, have been bought over by multinationals.
• The government is following the policy of disinvestment and outsourcing.
• Reduction in number of permanent employees. 
• Expansion of the unorganised sector.