In your opinion, will the long term benefits of liberalisation exceed its costs? Give reasons for your answer.
Answers
Answer: mark as best
Explanation: The liberalisation has brought following benefits to the Indian economy –
• The Indian economy has witnessed growth and opened up its market for foreign companies.
• Increased foreign direct investment has helped in economic growth and generation of employment.
• Privatisation has increased the efficiency of companies and has reduced the government burden of running these companies.
At the early stage of liberalisation, it has faced many criticism and many people said that it is just like welcoming another East India Company.
As per my opinion if we do cost and benefit analysis of the liberalisation, the benefits are so very much that they can easily overshadow the disadvantages and cost related to it.
Answer:
There is a mix response of the impact of liberalization.
Explanation:
Economic liberalization had stimulated economic growth and has open Indian economy to the foreign investors. There had an increase in foreign trade and thus increasing the job opportunities for people. Prices have lowered as the tariffs have been removed.
But on the other hand, as foreign goods have entered Indian market, it is becoming for Indian manufacturers to stand on the market as the other products from outside India are cheap on price. Indian farmers were earlier given subsidies and support prices, which ensured a minimum income for farmers but now all these prices have been withdrawn.
Thus, there are both advantages and disadvantages as an impact of liberalization.