Industrial Liberalisation
Trending Questions
Q. The government initiated a variety of policies in new economic policy which fall under three headings:
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation
Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.
The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms
Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.
Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
Assertion (A) - In many industries, the market has been allowed to determine prices based on market forces rather than government directives.
Reason (R) - All industries, including alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals, are no longer required to obtain a licence under the new policy.
[0.80 marks]
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation
Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.
The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms
Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.
Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
- Freedom from licencing implied freedom from capacity constraints.
- What to produce and how much to produce is a matter of producer choice, which was earlier decided by the government.
- In many industries, the market has been allowed to determine the prices through forces of the market and not by directive policy of the government.
Assertion (A) - In many industries, the market has been allowed to determine prices based on market forces rather than government directives.
Reason (R) - All industries, including alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals, are no longer required to obtain a licence under the new policy.
[0.80 marks]
- Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
- Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
- Assertion (A) is true but Reason (R) is false.
- Assertion (A) is true but Reason (R) is false.
Q.
What are the disadvantages of privatization?
Q. The government initiated a variety of policies in new economic policy which fall under three headings:
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation
Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.
The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms
Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.
Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
Q - _________ means to free the economy from the direct and physical control imposed by the government.
[0.80 marks]
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation
Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.
The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms
Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.
Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
- Freedom from licencing implied freedom from capacity constraints.
- What to produce and how much to produce is a matter of producer choice, which was earlier decided by the government.
- In many industries, the market has been allowed to determine the prices through forces of the market and not by directive policy of the government.
Q - _________ means to free the economy from the direct and physical control imposed by the government.
[0.80 marks]
- Globalisation
- Privatisation
- Privatisation
- Divestment
Q.
What do you mean by Privatisation?
Q. The government initiated a variety of policies in new economic policy which fall under three headings:
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation
Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.
The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms
Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.
Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
Statement 1: The concept of liberalisation was introduced to unlock the country's economic potential by encouraging the private sector.
Statement 2: The role of the public sector in future industrial development is being reduced as a result of liberalisation.
[0.80 marks]
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation
Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.
The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms
Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.
Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
- Freedom from licencing implied freedom from capacity constraints.
- What to produce and how much to produce is a matter of producer choice, which was earlier decided by the government.
- In many industries, the market has been allowed to determine the prices through forces of the market and not by directive policy of the government.
Statement 1: The concept of liberalisation was introduced to unlock the country's economic potential by encouraging the private sector.
Statement 2: The role of the public sector in future industrial development is being reduced as a result of liberalisation.
[0.80 marks]
- Both the statements are true.
- Both the statements are false.
- Statement 1 is true and Statement 2 is false.
- Statement 2 is true and Statement 1 is false.
Q. The government initiated a variety of policies in new economic policy which fall under three headings:
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation
Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.
The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms
Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.
Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
Assertion (A)- Liberalisation concept to encourage the private sector to take active part in the development process.
Reasons (R) - Industrial Sector Reforms and Financial Sector Reforms were taken by the government under liberalisation.
[0.80 marks]
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation
Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.
The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms
Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.
Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
- Freedom from licencing implied freedom from capacity constraints.
- What to produce and how much to produce is a matter of producer choice, which was earlier decided by the government.
- In many industries, the market has been allowed to determine the prices through forces of the market and not by directive policy of the government.
Assertion (A)- Liberalisation concept to encourage the private sector to take active part in the development process.
Reasons (R) - Industrial Sector Reforms and Financial Sector Reforms were taken by the government under liberalisation.
[0.80 marks]
- Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
- Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
- Assertion (A) is true but Reason (R) is false.
- Assertion (A) is false but Reason (R) is true.
Q.
The government decides to sell 100% of Indian Oil Corporation to Reliance Industries. What is the nature of this policy?
Privatisation
Liberalisation
Globalisation
None of the above
Q. Indirect taxes are regressive in nature. How can they be made progressive?
Q.
Which was the first country to introduce Privatisation?
Q.
Give some examples of privatization.
Q. Identify the correct statement from the following:
(i) Export duties were imposed in order to improve the competitiveness of Indian goods in the international market.
(ii) Privatisation of public-sector enterprises through the sale of a portion of their equity to the public. This is known as disinvestment.
(iii) Privatisation is the outcome of the policies of liberalisation and globalisation.
(iv) Globalisation resulted in greater access to the domestic market.
[0.80 marks]
(i) Export duties were imposed in order to improve the competitiveness of Indian goods in the international market.
(ii) Privatisation of public-sector enterprises through the sale of a portion of their equity to the public. This is known as disinvestment.
(iii) Privatisation is the outcome of the policies of liberalisation and globalisation.
(iv) Globalisation resulted in greater access to the domestic market.
[0.80 marks]
- i
- ii
- iii
- iv
Q. What is the difference between direct tax and indirect tax? Explain the role of government budget influencing allocation of resources.
Q. Which feature was not included in the new industrial policy in 1991?
- Privatisation
- Liberalisation
- Nationalisation
- Globalisation
Q.
De-licensing and abolition of price controls fall under liberalisation of which of the following segments?
Trade
Industry
Tax
Investment
Q. The architects of the eighth plan were Manmohan Singh and
- PC Mahalanobis
- M.S.Ahluwalia
- Kaushik Basu
- PV Narasimha Rao
Q. Fiscal Responsibility and Budget Management (FRBM) Bill was introduced in __________.
- 1998
- 1999
- 2000
- 2003
Q. Navratnas does not include __________.
- BEL
- BPCL
- MTNL
- OIL
Q. The government decides to sell 100% of Indian Oil Corporation to Reliance Industries. The nature of this policy is
- liberalisation
- globalisation
- privatisation
- free trade
Q. The government initiated a variety of policies in new economic policy which fall under three headings:
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation
Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.
The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms
Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.
Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
[0.80 marks]
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation
Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.
The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms
Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.
Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
- Freedom from licencing implied freedom from capacity constraints.
- What to produce and how much to produce is a matter of producer choice, which was earlier decided by the government.
- In many industries, the market has been allowed to determine the prices through forces of the market and not by directive policy of the government.
[0.80 marks]
- The number of industries reserved solely for the public sector was reduced from 17 to 3 under the new industrial policy.
- All industries were no longer required to obtain a licence under the new policy.
- It is no longer necessary to obtain a licence in order to open new units or expand existing ones.
- Foreign Exchange Reforms were taken by the government under liberalisation.
Q.
The correct expansion of the MRTP Act is
Market Revenues and Tax Policies
Monopoly Reforms and Tariffs Policy
Multi-Reforms for Trade Practices
Monopoly and Restrictive Trade Practices
Q.
Which of the following is implied by liberalisation in the context of this chapter?
Liberalisation is the process by which the nation gives up its cultural identities and traditions, replacing them with modern ideas.
None of the above
Liberalisation is the process by which the country is integrated into the global economy.
Liberalisation is the process by which government control and red-tapism are reduced, and operations of the economy are less tethered by restraints.
Q. Kelkar Committee report is related to _______.
- financial sector reforms
- tax reforms
- trade reforms
- administrative reforms
Q.
Industrial policy resolution was passed in the year _______.
- 1948
- 1951
- 1947
- 1950
Q.
Which of the following industries remain within government control?
Alcohol
Textiles
Rubber
Gun-powder
Q. How does the government use its instruments of taxation and public expenditure during inflation? Support your answer with reasons.
Q. The term bilateral monopoly refers to that market situation in which _______.
- a single seller confronts a single buyer
- there are large number of buyers and sellers
- few sellers and large number of buyers are available
- only one producer of a commodity is available
Q. License fee is paid to the government authority for a offering privilege.
- True
- False
Q. FDI is not permitted _______.
- rail transport
- nidhi companies
- atomic energy
- all of the above
Q. State with Reasons whether you Agree or Disagree.
Government of India did not take any measures to privatise its economy.
Government of India did not take any measures to privatise its economy.
Q. Industrial resolution policy (1956) enlarged the scope of ______ participation in India.
- private sector
- joint sector
- public sector
- foreign funds
