Population growth has a major effect on the Indian economy and it majorly affects the Per Capita Income. Large population size and the rapidly growing rate of the population gives us the result of low per capita income. India is currently the world’s 3rd largest economy but still at 116th rank for per capita income. Per capita income has been increasing for the last two decades but because of overpopulation.
People are the means as well as ends of the economic development of a country. They are an asset if inadequate amount but it proves to be a liability if in excess strength. India has crossed the optimum limit of and now people have become a liability. It means spreading a business, culture or any technology on an international level and an effort to reduce the geographical and political barriers for the smooth functioning of any business.
It is operational at three-level i.e., economic, cultural and political. Let’s look into LPG which stands for liberalization, privatisation, globalisation. Liberalization is a wide term which states all the practices of making laws, opinions, or the system all in all a little less severe, usually, it refers to the sense of eliminating certain rules, regulations or restrictions from the government. The term is most commonly used in relation to economics, where it tells us about economic liberalization, the reduction or removal of certain restrictions placed on a particular sphere in the economic activity. Privatisation means things including moving something from the public sector to the private sector and this service is also known as franchising or outsourcing or privatised. There are also some private entities that may perform public functions. Privatization also means selling the state-owned business to private interest.
Privatization transaction interpreted as a secured loan form and criticize a particularly noxious form a government debt. Privatisation has a different form of outcome in the world as privatization result is opened up on the model employed as also privatization refers to purchase of all outstanding shares of a publicly-traded company by private equity investor which is called going private. The impact of globalization is seen in the Indian industry as MNC’s have increased their investment in India over the past 15 years. Multinational companies in huge number have been settled in India in field of Fast foods, Beverages, Sportswear, Apparels and automobile companies. It also led to some negative impacts i.e., Unemployment, growth of Slum Capitals, the disparity between Rural and Urban India, etc.