1. needs
1.1. High fiscal deficit
1.2. poor performance of PSUs
1.3. fall in foreign exchange reserves
1.4. Balance of payment crisis
1.5. inflationary spiral
2. Liberalization
2.1. Objectives
2.1.1. international competitiveness
2.1.2. foreign investment
2.1.3. Reduce debt burden
2.1.4. opportunity to export
2.2. industrial sector
2.2.1. Decrease in role of public sector
2.2.2. price deteermination
2.2.3. Abolition of industrial licensing
2.2.4. import of capital goods
2.2.5. dereservation of products of small scale industries
2.3. Finanacial sector
2.3.1. Role of rbi
2.3.2. establishment of private sector banks
2.3.3. setting up new branched
2.3.4. Foreign investment
2.4. Foreign exchange reserve
2.4.1. Devaluation of rupee
2.4.2. Determination of foreign exchange rate
2.5. trade and investment policy reforms
2.5.1. dismantling of quotas
2.5.2. Reduction of tariff rates
2.5.3. Removal of licensing procedure for imports
2.5.4. removal of export duties
3. limitations
3.1. Contradiction between growth and development
3.2. low level of industrial growth
3.3. Adverse effect on agriculture
3.4. Reforms and fiscal policies
3.5. Disinvestment
3.6. increase in inequalities
4. privatisation
4.1. Positive imapact
4.1.1. Reduction in deficit
4.1.2. Financial Discipline
4.1.3. improve the efficiency of the management
4.1.4. competitiveness
4.1.5. increase in FDi
4.1.6. Diversification of production
4.2. negative impact
4.2.1. concentration of economic power
4.2.2. lopsided economic development
4.2.3. Highly priced goods
4.2.4. Rise in level of unemployment
4.2.5. social welfare neglected
5. Globalization
5.1. policy measures
5.1.1. Convertibility of rupee
5.1.2. Devaluation of indian rupee
5.1.3. rise in equity limit of participation
5.1.4. removal of controls on foreign trade
5.1.5. Modification of tariffs
5.2. Positive impact
5.2.1. greater access to global market
5.2.2. rise of possibilities of large industries of developing countires
5.2.3. Advancement can be influenced by rest of the world
5.3. negative impact
5.3.1. more benefit to developed countries
5.3.2. widened economic despairities
5.3.3. welfare and identity of people from developing countries compromised