what do you mean by liberalisation of the economy ?what measures have been taken for this?
Answers
government reduces the restrictions over the private control. this is called liberisation of the economy
Removing barriers or restrictions set by the government is known as liberalisation.
. With the liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.
. The government imposes lesser restrictions than before and is therefore, said to be more liberal.
Liberalisation measures undertaken by the Government of India are:
(i) Exemption of industries from licensing:
The government exempted all industries (except for alcohol, cigarettes, hazardous chemicals, explosives, electronic aerospace and drugs) from any kind of industrial licensing.
(ii) Expansion of Industries:
Industries are free to expand themselves according to the needs of market. Even government approval is not required. Ceiling for capital has also been abolished.
(iii) Freedom of Production:
According to the new economic policy producers are free to produce goods of their choice
(iv) Going away with the concept of MRTP:
Now, there are no 'MRTP’ companies. These companies can take their own investment decision and expansion plans.
(v) Extending Investment Limit of Small Industries:
According to the new policy investment limit of small scale industries have been increased to one crore, so that they may modernise these industries.
(vi) Inviting Direct Foreign Investment:
The Indian companies can invite the foreign investors to invest in their industries which has further enlarged and expanded many Indian industries.