Question

State the main objective of liberalisation policy. Why is it said that NEP is liberal?

Answer 1

The main objectives of liberalisation policy are as follows:
(i) To increase competition among domestic industries.
(ii) To increase foreign capital formation and improve technology.
(iii) To decrease the debt of the country.
(iv) To encourage cross border trade.
(v) To expand the size of the market.
Since the NEP aims to achieve all the above stated objectives, it is said that NEP is liberal.