Question

Which of the following statements is true for the Indian government’s policy of liberalisation?

Options

• Private companies, especially foreign firms, are encouraged to invest in sectors earlier reserved for the government.

• Foreign products are now easily available in Indian shops.

• Indian companies have ensured that they work within national boundaries.

• Licenses are no longer required to open industries.

Answer 1

Private companies, especially foreign firms, are encouraged to invest in sectors earlier reserved for the government.

Explanation:

• India's liberalization, which began in 1991, sought to open up the economy to private and foreign investment while reducing government control over industry.
• Previously under government control, industries like banking, insurance, telecommunications, aviation, and defence were made available to private and foreign companies.
• Better quality goods and services resulted from this action's enhanced competition and ability to draw in foreign direct investment (FDI).