Question

State the changes that were brought as a result of liberalisation.

• A. Relaxation of control in setting up industries
• B. Reduction of import tariff and tax
• C. Permission on foreign investments in different sectors
• D. Increased role of government in basic infrastructure development

Answer 1

Answer: (A), (B), (C)

Permission on foreign investments in different sectors

When the government reduces restrictions and loosens control over the private sector, it is called liberalisation. Under this move, the government allowed and encouraged private investments through relaxation of government control and reduction of tariffs and taxes. The government’s intervention in businesses was reduced.