What is liberalisation? when it was started in India?what are the causes from liberalisation?

Question

which purpose to start it?what a advantage and dis advantages?

Answer 1

In general, liberalization (or liberalisation) refers to a relaxation of previous government restrictions, usually in areas of social or economic policy. Liberalization of autocratic regimes may precede democratization (or not, as in the case of the Prague Spring).

In the arena of social policy it may refer to a relaxation of laws restricting for example divorce, abortion, homosexuality or drugs.

Most often, the term is used to refer to economic liberalization, especially trade liberalization or capital market liberalization.

Since its financial crisis in 1991, India has slowly traveled down the path of economic liberalization and structural adjustment.

Several factors led up to the 1991 crisis. The first was the second Gulf War between Iraq and the U.S. (August 1990 - March 1991), which led to a short-term increase in the price of oil. The second factor was political instability, with no major party able to win a clear mandate from the electorate. Finally, numerous international lenders feared that India would fall into a debt crisis.

Despite these international factors, India conceded to the dictates of the IMF. Jeffrey E. Garten posits that the world was astounded when Prime Minister P.V. Narashima Rao’s government undertook measures that opened India’s economy in the early 1990s.

Answer 2

liberalisation means opening the economy of the country to foreign countries. before lib in India, the govt had very very strict norms like certain goods cant be imported or exported from other countries. it was a method of keeping goods manufactured in the country within itself. one cannot import from china or export to USA. it involved too much of time and money. Foreign money cant come inside India without RBI giving a green signal. after lib, everything was free!! no barriers!!

adv is that u can get cheaper goods and cut on cost

bad is that it will smash native industries and money will accumulate to the rich

Answer 3

After Independence, Nehru who was a great fan of Communist Russia, ushered in a socialistic republic state. It was mixed economy, as they call it. State had a lot of control over industries and it was called licence raj. After Narasimha Rao took over as PM, with Manmohan Singh as the Reserve Bank Governor, the government really started shedding the tag of license raj. Many private players entered into such areas as Telecoms, television etc. Many international business houses, came to India to start business, since they were enamoured about the vast Indian market.

Answer 4

Liberalisation means export and import of goods/technologies easier.the edge is qualityand  competitiveness. Secientific and technical achivements re

ach to commen people  at affordable cost all over the world. It started in India in mid ninetees. The dis advantage is that  we cannot sit on our old/traditional habits .Local industry has to thrive for modern ways to compete with forigen other wise existence not possible.