Question
Discuss the changes that have emerged in Indian industries after globalisation and liberalisation.
Solution
Following are the changes that have emerged in Indian industries after globalization and liberalization:
- The Government of India has initiated the policy of liberalization since 1990s. Accordingly, private companies and foreign firms are being encouraged in those sectors which were earlier reserved for the government such as telecom, civil aviation and power etc.
- Due to liberalization and globalisation, several Indian companies have been taken over by the MNCS. On the other hand some Indian companies have become MNCs.
- The impact of liberalization and globalization is being felt in retail. Presently, the government is trying to sell its share in many public sector companies. This process is termed as disinvestment. However, the issue of job security has become sensitive.
- The secure employment in the large industry is also decreasing. There is a big gap between industries and their capacity to provide employment. The policy of land acquisition for industries has its own dimensions.
