How was the liberalisation policy gradually adopted in India?

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#1

How was the liberalisation policy gradually adopted in India?

Answer:

  • 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.