Question

b) State any two effects of liberalization of Indian economy.

Answer 1

Worst is that India has transitioned to be a service led economy, directly from an agrarian one. One expiation of this is end of policy of imports substitution which derived industrial growth upto 1990. Foreign companies got free access to Indian markets and made domestic products uncompetitive.

Answer 2

Answer:

Liberalization refers to the situation when the government allows for increased participation of private entities in the economy. For example governments regulate different sectors of the economy and may have a monopoly in them. Once they liberalize, they allow private entities entry into the sector.

Explanation:

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