What is liberalisation? Describe any four effects of liberalisation on the Indian economy.
REMOVING barriers or restrictions set by the government is known as liberalisation.
- Liberalisation of foreign trade raises volume of trade.
- It will attract foreign investments which industry will prosper.
- Surplus production of each country will be exported and required cheaper goods will be imported.
- Foreign trade is considered to be an engine of economic growth of the country. It integrates an economy to a global village.
- Liberalisation has resulted in more choice for the consumers. Now they get better quality and at lower prices products.
- Liberalisation makes imports and exports easier. It promotes the Indian economy.