Question

What are the essential features of 

(a) Liberalisation 

(b) Privatisation and 

(c) Globalisation

Answer 1

Essential features of 

(a) Liberalisation

• Abolishing licensing requirements in most of the industries a short list, except 
• No restriction on expansion or contraction of business. 
• Free movement of goods and services 
• Freedom in fixing the prices of goods and services. 
• Reduction in tax rates. 
• Simplifying procedures for imports and exports. 
• Making it easier to attract foreign capital and technology to India.

(b) Privatisation 

• The Government redefined the role of public sector. 
• Policy of planned disinvestments of the public sector 
• Refining of sick enterprises to the Board of Industrial and Financial Reconstruction. 

(c) Globalisation 

• Import liberalisation 
• Export promotion
• Foreign exchange reforms.