Liberalization & Globalization

For business regulatory and reputational risks in a globalized marketplace

Liberalization & Globalization have accelerated the trend towards privatization resulting in more powers being transferred from the Government to the Regulatory bodies like the SEBI, IRDA, TRAI etc.

Phenomenal changes that have taken place in India in the last two decades have resulted in enormous growth in the commercial and industrial sectors. The policies of the Government have changed radically since 1991, the year in which the Indian economy was opened up for foreign investment in a big way. Privatization, liberalization and globalization have provided an impetus to the opening up of the Indian economy. With such a surge in business opportunities, a healthy credit market is an essential requirement.

A facet of globalization is globalization of markets by increasing the size of the market which in turn has led to increased competition.

Internet has signaled the death of distance and it is no longer geography that determines the markets. Consumers can explore new markets and for better quality products which is made possible by the telecommunications revolution. Legal relations in the Globalized Economy will be regulated more by contractual terms than by public law.

Just as the advent of the industrial revolution required other institutions of the society to adapt themselves to the challenges, globalization raises new social, economic and legal issues. The impact of the breakdown of boundaries and cultural and linguistic barriers on market players is unprecedented.