In your opinion, will the long term benefits of liberalisation exceed its costs?Give reasons for your answer.


Solution:The adjustments undertaken as part of the liberalization programme have boosted economic growth and made Indian markets more accessible to international enterprises. Increasing foreign investment is believed to aid with job creation and economic growth. The privatization of public firms is intended to boost their efficiency while reducing the government’s administrative burden.

The impact of liberalization, on the other hand, has been varied. Many think that liberalization has had, and will continue to have, a detrimental net impact on India.

As I see it, the costs and disadvantages will outweigh the benefits, so while some sectors of Indian industry, such as software and information technology, or agriculture, such as fish or fruit, will benefit from access to a global market, others, such as automobiles, electronics, or oilseeds, will lose out because they will be unable to compete with foreign products and producers.

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