Question

Explain liberalisation​

Answer 1

Liberalisation:-

• Removing barriers or restrictions set by the government is what is known as liberalisation.

• With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.

• The government also imposes much less restrictions.

• The government removes trade barriers.

• The Indian government after independence, had put barriers on foreign trade and investment.

• This was done to protect the small produces within the country from foreign competition.

• Around 1991, the barriers was removed and Indian produces were allowed to compete with produces around the globe.

• Some of the producers suffered because of decision of the Government and some grew because of competition.

Answer 2

Answer:

Liberalisation was begun to put an end to these limitations and open multiple areas of the economy. Though some liberalisation proposals were prefaced in the 1980s in areas of export-import policy, technology up-gradation, fiscal policy and foreign investment, industrial licensing, economic reform policies launched in 1991 were more general. There are a few significant areas, namely, the financial sector, industrial sector, foreign exchange markets, tax reforms and investment and trade sectors which gained recognition in and after 1991.

Meaning of Liberalisation

Liberalisation (or liberalization) is any method of how a state raises limitations on some private individual ventures. Liberalisation befalls when something which was forbidden is no longer forbidden or when government