Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 1 views

    Liberalization

    Uploaded by

    rotigop688

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Liberalization

    Uploaded by

    rotigop688
    1 views8 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1 views8 pages

    Liberalization

    Uploaded by

    rotigop688

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 8

    Liberalisation

    Meaning of Liberalisation

    • Liberalisation (or liberalization) is any method of how a state raises


    limitations on some private individual ventures. Liberalisation befalls
    when something which was forbidden is no longer forbidden or when
    government laws are loosened.
    • Liberalisation was begun to put an end to these limitations and open
    multiple areas of the economy. Though some liberalisation proposals
    were prefaced in the 1980s in areas of export-import policy, technology
    up-gradation, fiscal policy and foreign investment, industrial licensing,
    economic reform policies launched in 1991 were more general. There
    are a few significant areas, namely, the financial sector, industrial
    sector, foreign exchange markets, tax reforms and investment and trade
    sectors which gained recognition in and after 1991
    Liberalisation in India

    • Since the adoption of the New economic strategy in 1991, there


    has been a drastic change in the Indian economy. With the arrival
    of liberalisation, the government has regulated the private sector
    organisations to conduct business transactions with fewer
    restrictions.
    • For developing countries, liberalisation has opened economic
    borders to foreign companies and investments. Earlier, Investors
    has to encounter difficulties to enter countries with many
    barriers.
    • These barriers included tax laws, foreign investment restrictions,
    accounting regulations, and legal issues. The economic
    liberalisation reduced all these obstacles and waived few
    restrictions over the control of the economy to the private sector
    Objectives of Liberalisation

    • To boost competition between domestic businesses


    • To promote foreign trade and regulate imports and exports
    • Improvement of technology and foreign capital
    • To develop a global market of a country
    • To reduce the debt burden of a country
    • To unlock the economic potential of the country by encouraging the
    private sector and multinational corporations to invest and expand.
    • To encourage the private sector to take an active part in the
    development process.
    • To reduce the role of the public sector in future industrial development.
    • To introduce more competition into the economy with the aim of
    increasing efficiency.
    Reforms under Liberalisation

    • Deregulation of the Industrial Sector


    • Financial Sector Reforms
    • Tax Reforms
    • Foreign Exchange Reforms
    • Trade and Investment Policy Reforms
    • External Sector Reforms
    • Foreign Exchange Reforms
    • Foreign Trade Policy Reforms
    Impact of Liberalisation on Indian Economy

    • Positive Impact of Liberalisation in India


    • 1. Free flow of capital: Liberalisation has enhanced the flow of
    capital by making it affordable for businesses to reach the
    capital from investors and take a profitable project.
    • 2. Diversity for Investors: The Investors will be benefitted by
    investing a portion of their business into a diversifying asset
    class.
    • 3. Impact on Agriculture: In this area, the cropping designs
    have experienced a huge change, but the impact of
    liberalisation cannot be accurately measured. Government
    restrictions and interventions can be seen from production to
    distribution of the crop.
    Impact of Liberalisation on Indian Economy

    • Negative Impact of Liberalisation in India


    • 1. The weakening of the economy: Enormous restoration of
    political power and economic power will lead to weakening the
    entire Indian economy.
    • 2.Technological Impact: Fast development in technology allows
    many small scale industries and other businesses in India to
    either adjust to changes or shut their businesses.
    • 3. Mergers and Acquisitions: Here small businesses are merging
    with big companies, therefore, the small companies employees
    may need to enhance their skilled and technologically advanced.
    This enhancing of skill and the time it might take may lead to
    non-productivity and can be a burden to the company’s capital.
    THANK YOU

    You might also like