Question

positive impact of liberalisation on indian economy

Answer 1

As per principle of economics, when a particular sector performs disproportionately higher than average growth rate,economic wealth starts concentrating into that sector. ...Liberalization had its impact on various sectors including Agricultural, Industrial, Financial, Health sector and many others

Answer 2

After suffering a huge financial and economic crisis our previous Government brought a new policy which is known as Liberalization, Privatization and Globalization Policy (LPG Policy) also known as New Economic Policy,1991 as it was a measure to come out of the crisis that was going on at that time. The following measures were taken to liberalize and globalize the economy:

1. Devaluation: To solve the balance of payment problem Indian currency were devaluated by 18 to 19%.

2. Disinvestment: To make the LPG model smooth many of the public sectors were sold to the private sector.

3. Allowing Foreign Direct Investment (FDI): FDI was allowed in a wide range of sectors such as Insurance (26%), defense industries (26%) etc.

4. NRI Scheme: The facilities which were available to foreign investors were also given to NRI's