Liberalization : Liberalization is a general term for any process whereby a state lifts restrictions from various sectors of the economy.
Efforts for import Liberalization :
1. For the development of re-exporting and to provide the exporters raw materials without any interruption, rebate in import duty was given.
2. Exporters earning foreign currency of more than 10 crore rupees were given permission for imports for 1 year through Advance Licensing Policy.
3. It is necessary that the supply of capital goods and raw materials be ensured for industrialization. For their import, more items were included in the Open General License list, so that the production would not be affected. Apart from open general license imports, they were permitted import of raw materials.
4. Provision of import facilities to trading houses, star trading houses, super star trading houses. Exporters who had exporterd items worth 12.50 crore rupees annually in the last 3 years were rated as export houses, those whose export in the last 3 years was a minimum of 62.50 crores, annually, were rated as trading houses, those exporters whose export in the last 3 years was a minimum of 312.50 crores were rated as star trading houses and the exporters’ whose export in the last 3 years was a minimum of 925 crore mpees were rated as super star trading houses. They were provided import facilities.
5. In order to make Indian products competitive in the international market, improvements were needed in technology. To make imports of technology and specialized services easier and simpler, a technology development fund was established.
6. The pre-conditions of imports through government agencies were abolished. The list of items whose imports required processing by government agencies was shortened, so that, if needed, imports could be done without the intervention of these agencies.
