Question

What is liberalisation? Describe any four effects of liberalisation on the Indian economy.

Answer 1

Liberalization is any process whereby a state lifts restrictions on some private individual activities. Liberalization occurs when something which used to be banned is no longer banned, or when government regulations are relaxed.

1) Economic liberalization has opened up the Indian economy to the foreign investors.

2) It has also opened up the economy to the foreign companies who now have greater access to the Indian markets.

3) It has increased foreign trade.

4) It has increased the job opportunities for the people.