Liberalization was introduced to put an
end to those restrictions which became
major hindrance in growth and
development and open various sectors of the economy in the light of this stater explain various liberalization measures introduced in 1991 only
Answers
Answer:
The basic aim of liberalization was to put an end to those restrictions which became hindrances in the development and growth of the nation. The loosening of government control in a country and when private sector companies’ start working without or with fewer restrictions and government allow private players to expand for the growth of the country depicts liberalization in a country.
Answer:
The various liberalisation measure introduced in 1991 were as following below :-
(i) prior to 1991 ,govt. had imposed several types of controls on private enterprises in the do.estic economy . These includes industrial licensing system ,price control or financial control on goods ,import licence ,foreign exchange control ,restrictions on investment by big business houses , etc .
( ii) It was experienced by the government that several shortcomings had emerged in the economy on account of these controls.
( iii) These controls had given rise to corruption ,undue. delays and inefficiency .
(iv ) Growth rate of GDP had fallen sharply and high - cost economic system ( rather than a low - cost competitive economic system ) came into being .