The new economic policy, 1991 have created new waves in all walks of life of India. The introduction of privatization, liberalization and globalization have been changed all the sectors of the economy. Liberalization means removing hurdles of the development of industries in India. In India, the corporate sector and other important sectors are unable to grow with the fulfillment of targets. The reforms are not accidental, they are incidental. The government of India introduced these policies to change the lives of 100 crore plus people. Privatization means inviting private participation into the agreed sectors. The investment norms will be fulfilled by the private sector and policy and regulatory aspects will be covered by the government. Privatization exposes higher talent and skills.
Public sector is unable to work in profitable environment. The reduction of government participation and an entry of the private sector. Privatization can be described as exit of public sector and entry of private sector in any kind of business aspects. Globalization means activating of all nations economies in tune with the flow of global village. The globe is rotating towards funds. The financial resources are always travels for profit. The distance between nations has been reduced drastically. The funds are transferring throughout the globe with a click of mouse. However the poverty is enemy for all nations. The globe is spitted into two categories, such as developed nations and developing nations. USA, BRITAIN, SOVIET UNION, FRANCE, GERMANY belongs to well developed nations. The rest of the globe can be categorized as undeveloped countries. Therefore the poverty is the basic problem for undeveloped countries. These countries are seriously thinking how to attack poverty.
Poverty was extremely large during the early decades after independence in India. The economic growth rates were low and associated socio-cultural norms, and local conditions were hostile to improve living standards. Poverty lines were separately set as the amount in rupees needed to replenish 2,400 kilo calories of energy per day in the rural and 2,100 kilo calories in the urban area.
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