Question

what is liberalisation and its four effects on Indian economy

Answer 1

Liberalisation means the opening of the country for foreign investments and capitals. Trade barriers are often used  by countries to protect the domestic industries from the products of foreign land. usually countries resort to impose Licenses, Import quotas or Voluntary export restraints to protect local markets. However after liberalization organizations like the WTO attempted to reduce production and consumption distortions created by tariffs. Free trade benefits consumers through increased choice and reduced prices. On the other hand free flow capital ensures that any country can make investments in the alien land.

Answer 2

Liberalisation means the opening of the country for foreign investments and capitals. Trade barriers are often used  by countries to protect the domestic industries from the products of foreign land.

Impacts:
(1) Increase in the foreign trade
(2) Increase in foreign investment
(3) Exchange of technologies between countries
(4) Better means of communication have developed alongside globalization.