What are the steps Government of India has taken as a part of its liberalisation process
Answers
Answer:
Liberalisation of the economy means to free it from direct or physical controls or restrictions imposed by the government. It can be similar to deregulation.
Measures of liberalisation taken by the Government of India are:
1. Exemption of industries from licensing - All industries except alcohol, hazardous chemicals, cigarettes, drugs, electronic aerospace and explosives are exempted from industrial licensing.
2. Expansion of industries - There is no ceiling for capital. Industries can expand according to the needs of the market.
3. Freedom of production - Producers can produce goods of their choice.
4. Concept of MRTP is not applicable - The companies can make their own investment decisions and expansion plans.
5. The investment limit of small industries has been increased - The investment limit of small scale industries has been raised to one crore. So they can modernize their industries.
6. Inviting direct foreign investment - Indian firms can invite foreign investors to invest in their industries to expand and enlarge their business.
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