Question

Briefly explain the important areas of liberalisation.

Answer 1

as pointed out,rules and laws which r aimed at regulating the economic activities becaome majour hindrance in growth and development. liberalization was introduced to put an end up tjose restrictions and open up various sectors of the economy.Though a few liberaluzation measures were introduced in 1980's in areas of industrial lisencing,export-import policy,technology upgragation,fiscal policy and foriegn investment reforms policy initiations in 1991 were more comprehensive. Some important areas r industrial sectors,financial sectors,tax reforms,foreign exchange markets and trade amd investment sectors which received greater attention in and after 1991...

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Answer 2

Concept: A nation's government rules are loosened through liberalisation, allowing private sector businesses to conduct business with fewer limitations.

Solution:

Major changes brought about by liberalisation are classified as

a) improvements to the industrial sector, including

i) reduction of public sector businesses

ii) removal of industrial licences

iii) removing production spaces from all business sizes' reservations

b) fiscal improvements, such as

i) decrease in the indirect tax rate

ii) Streamlining of the income tax system.

iii) moderation of the entire tax system

c) Reforms to the financial industry that include

i) The Reserve Bank of India's function shifted from regulator to mediator.

ii) opening of the banking industry to the private sector

d) trade reforms, such as

i) removal of import quotas

ii) removing import licencing

iii) removal of the export tax

iv) lowering of tariff rates

e) reforms affecting the foreign exchange market.

i) depreciation of the rupee

ii) foreign currency rates are set by supply and demand factors in the market.

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