How was the liberalisation policy gradually adopted in India?
- After Independence, the Indian government had put barriers on foreign trade and foreign investment.
- Initially, Indian industries were just coming up after Independence, so competition from imports wouldn’t have allowed these industries to come up.
- In 1999, the government decided that the time had come for Indian producers to compete with the producers around the globe.
- It was felt that competition would improve the performance of domestic producers since they would improve their quality.
- Thus, barriers on foreign trade and foreign investment were removed to a large extent.
- Now, goods could be imported and exported easily and foreign companies could also set up
factories and offices here.