4. Globalisation and the Indian Economy
Privatisation was another component of liberalisation.
It means allowing the private sector to setup industries which were earlier reserved for the public sector.
The following steps have been taken :
1. The number of industries reserved for public sector has been reduced from 71 to 3.
2. Now public sector can enter in core industries like iron and steel, electricity, transportation communication, ship building etc.
3. Process of disinvestment has been initiated by the governement in respect of those public sector industries which have been running in loss.
4. The private sector has been free from many restrictions such as licensing, permission to import raw materials, regulation of prices and restriction on investment.