Question

Explain the impact of LPG on the Indian Economy.

Answer 1

Impact of Liberalisation:

• Liberalization has opened up new business opportunities abroad and increased foreign direct investment.
• A new market for various goods came into existence and resulted not only in urban but also in rural development.
• It became very easy to obtain loans from banks for business expansion.

Impact of Privatisation:

• Privatization has a positive impact on financial growth by decreasing deficits and debts.
• Increase in the efficiency of government undertakings.
• Provide better goods and services to the consumers.

Impact of Globalization:

• Multinational corporations can manufacture, buy and sell goods worldwide.
• Globalization has led to a boom in the consumer products market.
• The advent of foreign companies and growth in the economy has led to job creation.