Question

Discuss features of economc liberalisation?

Answer 1

Answer:

The economic liberalisation in India refers to the economic liberalisation of the country's economic policies, initiated in 1991 with the goal of making the economy more market- and service-oriented, and expanding the role of private and foreign investment.

Features of Liberalisation :

(i) Freedom of opening/starting production units.

(ii) Use of new machines and technology.

(iii) No government interference in production.

(iv) Free flow of foreign investment.

Features of Privatization:

(i) Reduction in extra burden on government.

(ii) Control over poor performance of public sec-tor.

(iii) Check on high-handedness of bureaucracy.

(iv) Disinvestment (sale of shares in PSUs to

public)

Features of Globalization:

(i) It results in integration of world

economies that

helps in raising world production.

(ii) It helps in removing inefficiency from industrial

units.

(iii) It helps in improving allocative efficiency of

resources.

(iv) It encourages global competition which reduces

costs and improves quality.