Volume : IV, Issue : IX, September - 2014

The New Economic Policies and their Strategic Linkages with Corporatization

Prince. Tc

Abstract :

India falls under the mixed economic system and it encompasses the best practices of both capitalism and socialism, which thus designed to ensure ‘social justice and self–reliance’. India therefore allowed the constructive inter–play of both public and private sectors; former entrusted to operate heavy & key industries and later expected to engage in consumer industries. The objective of self– reliance expected to be ensured through protecting the domestic market from unleashing foreign competitions by imposing high rates of tariff and other forms of restrictions. A sudden drying up of inward remittances and the west Asian market crisis because of the Gulf war, and the collapse of the Soviet economy – then Indias largest trading partner – were the proximate economic causes of the crisis of 1990s. During when, IMF had extended an 18–months balance of payments assistance programme of US $ 2.2 billion to India covering the initial period up to March 1993. This reform (New Economic Policy1991) covered the areas of macro–economic stabilization policies and structural adjustment policies, as well. The neolialism is therefore a condition, in which markets decide the policy options on critical areas of business and the states are set to follow them without fail in most of the occasions. The new economic policy ought in uneven growth in India and it happened, when the government of India decentralized her power to invite investments in respect of each state. In the regime of corporatization, the regional trade blocs have been taking over the space of states in many respects and in response, the states become the subservient of protecting the interests of various trade blocs and their corporate hegemonies over others.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Prince.TC The New Economic Policies and their Strategic Linkages with Corporatization Indian Journal of Applied Research, Vol.4, Issue.9 September 2014

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