What is liberalisation? what steps were taken by the government to liberate the indian economy?
Answers
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.
(I) Exemption of enterprises from authorizing: The legislature exempted all enterprises (with the exception of liquor, cigarettes, risky chemicals, explosives, electronic aviation, and medications) from any sort of modern permitting.
(ii) Expansion of Industries: Ventures are allowed to grow themselves as per the requirements of the market.
(iii) Freedom of Production: As indicated by the new monetary arrangement, producers are allowed to create merchandise of their decision
(iv) Going away with the idea of MRTP: Presently, there are no 'MRTP' organizations. These organizations can take their own venture choice and extension designs.