What is liberalisation? Describe any four effects of liberalisation on the Indian economy

Globalization and Indian Economy (10)

What is liberalisation ? Describe any four effects of liberalisation on the Indian economy.

Answer

Liberalisation means:

Removing barriers or restrictions set by the government is known as liberlisation:

Impacts of Liberalisation:

  1. Competition would improve the performance of producers within the country.
  2. Barriers on foreign trade and foreign investment were removed to a large extent. This meant that goods could be imported and exported easily.
  3. Foreign companies could set up factories and offices to boost up production.
  4. It allows to make decisions freely.
  5. The competition would improve the performance of producers within the country since they have to improve their quality.
Exam Year: 2017