Question

Mention three advantages of liberalisation in the Indian context.

Answer 1

1. Greater inflow of foreign capital and technology: Liberalisation opened India to FDI and multinational firms, bringing capital, modern technology, and management practices that helped domestic firms upgrade.
2. Increased competition and improved efficiency: The removal of licensing and trade barriers made it easier to start businesses and exposed domestic firms to competition, raising productivity and encouraging the adoption of better methods.
3. Consumer benefits and new employment opportunities: Consumers gained more choice and lower prices through greater product availability, and sectors such as IT/BPO created significant new jobs.