Liberalization is the easing of government rules and restrictions of local trades and businesses. Liberalization allows local businesses to grow freely and more profits. Effects of liberalisation on the Indian economy are given below.
- Increased foreign direct investment.
- Reduced the monopoly of the public sector.
- Increased employment opportunities.
- Increased international competitiveness of industrial production.
- Reduced rates of interest and tariffs.
- Development in technology due to use of foreign technology in industrial applications
- Decreased the debt burden of the country.
- Increased dependence on other nations for forex, technology etc.