All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Class 12 Exam  >  Class 12 Questions  >  First country to liberalise its economy in th... Start Learning for Free
SaveJoin the Discussion on the App
First country to liberalise its economy in the south asian region?
Clear all your Class 12 doubts with EduRev
Most Upvoted Answer
First country to liberalise its economy in the south asian region?
Introduction

The liberalisation of an economy refers to the process of opening up an economy to the world by reducing trade barriers and allowing foreign investment. In the South Asian region, India was the first country to liberalise its economy in 1991.

Reasons for Liberalisation

India's economy was facing a severe crisis in the late 1980s due to a balance of payment crisis, high inflation, and a large fiscal deficit. The government was unable to finance its expenditures, and the country was on the verge of defaulting on its international debts. The government realised that the only way to save the economy was to open up the country to foreign investment and reduce trade barriers.

Steps taken by the Indian Government

The Indian government took several steps to liberalise the economy, which included:

1. Devaluation of the Indian Rupee: The government devalued the Indian rupee to make exports cheaper and imports expensive.

2. Reduction of Import Tariffs: The government reduced import tariffs to allow cheaper imports and increase competition.

3. Abolition of Licensing: The government abolished licensing in most sectors to allow private investment and competition.

4. Foreign Investment: The government allowed foreign investment in most sectors, which increased competition and brought in much-needed capital.

5. Privatisation: The government started the process of privatisation by selling off its stake in public sector enterprises.

Impact of Liberalisation

The liberalisation of the Indian economy had a significant impact on the country's growth and development. The economy grew at an average rate of 7% per annum for the next two decades, and the poverty rate declined from 45% in 1993 to 22% in 2011. The liberalisation also led to the emergence of a new middle class, which fuelled economic growth and consumption.

Conclusion

In conclusion, India was the first country in the South Asian region to liberalise its economy. The liberalisation was necessary to save the country's economy, and it had a significant impact on the country's growth and development. The liberalisation allowed foreign investment, reduced trade barriers, and increased competition, which led to economic growth and development.
Community Answer
First country to liberalise its economy in the south asian region?
It's lanka!
Explore Courses for Class 12 exam

Similar Class 12 Doubts

India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Which one of the following best expresses the main idea of the passage?

India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Which one of the following best expresses the main idea of the passage?

The country’s first semiconductor plant is to be established in Mysuru with an investment of 22,900 crore ($3 billion). The project is expected to be a gamechanger for the region’s growth and give a fillip to connectivity, which is expected to attract more investment.Israeli firm ISMC Analog Fab Pvt. Ltd. has signed an MoU with the Government of Karnataka for the project. The firm has sought 150 acres of land at Koochanahalli near Thandya on the Mysuru-Nanjangud road.Officials involved with the negotiations and signing of the MoU said the project will help expedite connectivity factors as it will play a significant role in luring more such investment. This, in turn, will create more jobs and change the economic profile of Mysuru.Mysuru MP Pratap Simha expects the ongoing Bengaluru-Mysuru Expressway Corridor, expansion of Mysuru airport and introduction of faster and additional trains to spur industrial development in the region.Q. Which of the following is not a leading semiconductor producer?

India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Which one of the following CANNOT be inferred from the information given in the fifth paragraph?

India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Which one of the following CANNOT be inferred from the information given in the fifth paragraph?

First country to liberalise its economy in the south asian region?
Question Description
First country to liberalise its economy in the south asian region? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about First country to liberalise its economy in the south asian region? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for First country to liberalise its economy in the south asian region?.
Solutions for First country to liberalise its economy in the south asian region? in English & in Hindi are available as part of our courses for Class 12. Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
Here you can find the meaning of First country to liberalise its economy in the south asian region? defined & explained in the simplest way possible. Besides giving the explanation of First country to liberalise its economy in the south asian region?, a detailed solution for First country to liberalise its economy in the south asian region? has been provided alongside types of First country to liberalise its economy in the south asian region? theory, EduRev gives you an ample number of questions to practice First country to liberalise its economy in the south asian region? tests, examples and also practice Class 12 tests.
Explore Courses for Class 12 exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup