Q. 305.0( 3 Votes )

What is liberaliz

Answer :

1. Removal of barriers or restrictions set up by the government is known as the process of liberalisation. The Indian government after independence had put barriers to foreign trade and foreign investment. However, these barriers were removed in 1991 which eventually brought wide-ranging changes in the Indian economy.

These changes are as follows –

2. The removal of trade barriers brought in new opportunities for the import-export purpose. Goods could now be imported as well as exported easily as compared to the previous phase.

3. Foreign companies were allowed to invest in setting up offices and factories in India thus bringing foreign products and services in the domestic markets of India.

4. The liberalization of trade and businesses were now allowed to make their decisions freely. They could decide upon the products to be imported or exported as government liberalized its rules and regulations.

5. On an overall basis, the government now imposes much fewer restrictions than were put immediately after independence and is therefore said to be more liberal in nature.

NOTE - Liberalisation of foreign trade and investment, in basic terms, refers to the removal of barriers i.e. economic barriers protecting the domestic producers from the foreign producers. The policy of restrictions on trade and investment was adopted by the leaders at the time of independence in order to protect the domestic producers from foreign competition. Moreover, economically and financially, the Indian economy was suffering from the impact of British rule which first required the development of India and its economy.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Heights and Distances - IHeights and Distances - IHeights and Distances - I54 mins
History - Concept and QuestionsHistory - Concept and QuestionsHistory - Concept and Questions57 mins
Trigo Marathon Part 2Trigo Marathon Part 2Trigo Marathon Part 245 mins
Arithmetic Progression and 'nth' Term of APArithmetic Progression and 'nth' Term of APArithmetic Progression and 'nth' Term of AP55 mins
Trigo Marathon Part 1Trigo Marathon Part 1Trigo Marathon Part 146 mins
Revision on Substitution and  Elimination MethodRevision on Substitution and  Elimination MethodRevision on Substitution and Elimination Method44 mins
Match the ColumnsMatch the ColumnsMatch the Columns38 mins
Application of Trigo Important QuestionsApplication of Trigo Important QuestionsApplication of Trigo Important Questions44 mins
Economics - Concept and QuestionsEconomics - Concept and QuestionsEconomics - Concept and Questions59 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

Transportation teTogether With Social Science

What is fair globTogether With Social Science

Which one of the Social Science - Board Papers