Question

What Is Liberalisation in India and Its Features?

Answer 1

Liberalisation is the process of relaxation of trade rules and regulations of a country by the government which paves the way for economic growth and development. Liberalisation in India started in the year 1991.

Following are the features of liberalisation in India:

1. Abolition of license raj in the country. License raj is referred to as a complicated set of policies, rules and regulations that were necessary for doing business in the country.
2. Inflow of foreign direct investment in the country.
3. Removing monopoly of public sectors from various business areas of the economy
4. Reduction in the rates of interest and tariffs

Also see:

• MCQs on Liberalisation
• MCQs on Globalisation
• Advantages of Globalisation
• Objectives of Privatisation