What is meant by ‘liberalisation’?


Solution: Liberalization is the process of reducing government control over economic activities and allowing market forces to decide. In general, it is a process of liberalizing laws and reducing government rules and regulations on capital, labor, and commerce; privatization of public sector enterprises; and a reduction in tariffs and import charges to make it easier to import foreign goods.

  • It includes the privatization of public-sector enterprises and makes it easier for foreign companies to establish businesses in India.

This is also referred to as marketization or a market-based solution to economic, social, or political issues.

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