In India, liberalization refers to the economic reforms implemented in the early 1990s to open up the Indian economy to foreign investment and reduce government control and regulations. These reforms were aimed at transforming India from a closed and heavily regulated economy to a more open and market-oriented one.

The liberalization process in India included several key policy changes. These included reducing trade barriers and tariffs, allowing greater foreign direct investment (FDI) in various sectors, deregulating industries, and encouraging competition. The government also implemented fiscal reforms, such as reducing subsidies and controlling the fiscal deficit.

The liberalization policies had a significant impact on the Indian economy. They led to increased foreign investment, improved productivity, and higher economic growth rates. The Indian economy experienced a surge in industrialization and the development of the services sector, particularly in information technology and business process outsourcing.

Liberalization also had some negative effects, such as widening income inequalities and creating job insecurity for certain sectors. Additionally, the removal of trade barriers exposed some domestic industries to competition from more efficient foreign companies, which led to the decline of certain sectors.

Overall, liberalization in India has been credited with transforming the Indian economy, making it one of the fastest-growing economies in the world. However, it has also brought about social and economic challenges that the country continues to grapple with.