In general words it includes
- Monetary policy
- Fiscal policy
- Industrial policy
- Foreign trade policy
- Investment policy
Indian Economic policy
India is great democratic country which have obtained independence in 1947 and started national five year economic plans from 1951. In these plans, many economic policies are activated by central govt. for Indian economic growth. In 1991 the new economic policy is made by govt. of India after this Yashwant Sinha finance minister of India had made second generation reforms in his economic policy.
Features of New economic policy of India
After making new economic policy, India will reduce his restriction on international business. Indian Govt. has power to control international business by making license condition. The numbers of industries are reduced which needed license for foreign trade. Govt. has also plan to abolish licensing system for greater liberalization
Privatization means transfer of Govt. shares in Company to private hand for greater participation of general people in public company. Now in certain Govt. companies private shares reaches up to 51% .
Globalization means open the door of India for whole world and anyone can come to India and sale and purchase the products of Companies or established business. Indian Govt. has faith that this will increase the foreign investment in India.
Modernization means that working system of govt and business will be changed and computer and Internet technology will be included in its work.
Argument in the favor of new economic policy of India
- It will increase foreign direct investment
- It will increase the standard of living of Indians
- Every thing will available in Indian market.
- Indian businessman will get power from foreign healthy competition.
Argument against new economic policy of India
- It will increase the multinational companies which will be danger for Indian security.
- It will unprotect Indian businessmen and companies.
- It will increase unemployment due to increase the use of computer.
- It will increase the prices due to abolishing some licensing sector.
India Govt. should make economic policy by first seeing Indian interest not IMF or World Bank Interest because; Indian Govt. has first responsibility for Indians due to system of democracy and also Indian Govt. Should not import zero technology products on the name of Globalization. Govt. should protect Indian businessmen and Companies first before opening the doors for MNC in India.