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Economic liberalization in India - Policy Regimes, Indian Economy Video Lecture | Indian Economy - B Com

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FAQs on Economic liberalization in India - Policy Regimes, Indian Economy Video Lecture - Indian Economy - B Com

1. What is economic liberalization in India?
Ans. Economic liberalization in India refers to the series of policy reforms implemented in the 1990s to open up the Indian economy to foreign investment and reduce government regulations. This involved reducing trade barriers, removing restrictions on foreign investment, privatizing state-owned enterprises, and deregulating various sectors of the economy.
2. What were the main policy regimes implemented during economic liberalization in India?
Ans. The main policy regimes implemented during economic liberalization in India included: 1. Industrial Policy: The government introduced a new industrial policy in 1991 that aimed to promote competition, attract foreign investment, and encourage privatization. 2. Trade Policy: The government implemented trade reforms to liberalize imports and exports, reduce tariffs, and remove quantitative restrictions on trade. 3. Financial Sector Reforms: The banking sector was liberalized, allowing private and foreign banks to enter the Indian market. Capital markets were also opened up to foreign institutional investors. 4. Foreign Investment Policy: Foreign investment regulations were relaxed, allowing greater foreign direct investment (FDI) in various sectors of the economy. 5. Taxation Reforms: The tax structure was simplified, and tax rates were rationalized to promote investment and economic growth.
3. How did economic liberalization impact the Indian economy?
Ans. Economic liberalization had significant impacts on the Indian economy. It led to increased foreign investment, technological advancements, and competition in various sectors. This resulted in higher economic growth, increased employment opportunities, and improved living standards for many Indians. However, it also led to some negative consequences, such as widening income inequality and regional disparities.
4. Did economic liberalization lead to the growth of certain sectors in India?
Ans. Yes, economic liberalization led to the growth of several sectors in India. The services sector, particularly information technology (IT) and business process outsourcing (BPO), experienced significant growth due to increased foreign investment and the availability of skilled labor. Additionally, sectors such as telecommunications, banking, insurance, and retail saw substantial expansion as a result of liberalization measures.
5. Are there any challenges or criticisms associated with economic liberalization in India?
Ans. Yes, there are challenges and criticisms associated with economic liberalization in India. Some argue that liberalization has led to increased inequality, as the benefits have not been evenly distributed among all sections of society. There are concerns about the displacement of workers in certain industries and the impact on small-scale industries. Additionally, critics argue that liberalization has not effectively addressed issues such as poverty, rural development, and environmental sustainability.
46 videos|48 docs|23 tests
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