The process of industrialization in India can be divided into two parts - before and after 1992. During first forty years after independence the Indian economy had diversified and expanded very fast. But this growth was characterized by rigid controls and regulations.
In August 1992, Government of India took a bold step by changing its economic policies from state control to market forces. A need was felt to give more responsibility to private capital and enterprise, both domestic as well as foreign. In response to this, the new industrial policy of liberalization, privatisation and globalization was adopted in August 1992.
The immediate cause of this changes in economic policy was to tide over balance of payment crises but having wide social, economic, political and geographical implications.
Liberalization means a reduced role for the Government and a greater role for the market or the liberal attitude of the Government for the establishment and running of industries. It was touted as a panacea for the ills of Indian economy. However, after 15 years of following the path of literalization, the results are not that sweet.
The gap between the rich and the poor has increased. Production of goods of mass consumption has not improved. Employment opportunities have not increased at the desired rate.
In privatisation there will be transfer of the ownership of public enterprises to private capital, opening of more industrial areas to private capital and enterprise. The main aim of privatisation is to make use of privately owned resources for collective welfare of the people.
Globalization which stands in the current phase for increasing integration between different economies of the world. The economic gap between different nations is reduced by removing all restrictions between nations on the movement of goods, services, capital and technology.
Globalization has made significant impact on consumption patterns and life style of the people. Now a days the whole world has become a market. Globalization has also affected on value system.