What Is Liberalisation In Economics?

Meaning of Liberalisation

The basic aim of liberalisation was to put an end to those restrictions which became hindrance or obstacles in the development and growth of the nation.

The loosening of government control in countries and when private sector companies start working without or with fewer restrictions and Government allows private players to expand for the growth of the country.

Objective Of Liberalisation

  • To increase competition among domestic Industries.
  • To encourage foreign trade with other countries with regulated import and export facilities.
  • To expand the global furniture market of the country.
  • It aims to enhance foreign capital and technology.
  • To diminish the debt burden of the country.

Features Of Liberalisation

  • Its aim is to promote free market competition and economic growth by reducing Govt regulation and restrictions.
  • It aims to promote free trade, which can lead to increased efficiency and lower prices.
  • It reduces the tariff and trade barriers between countries.
  • It also aims to encourage competition and innovation to allow market forces to determine quality and prices.
  • It involves the transfer of Govt. owned assets and industries to the private sector.
  • It aims to improve efficiency and productivity and to reduce the burden on taxpayers.
  • It also involves reducing subsidies in the market.
  • It helps in reducing Government spending and increasing interest rates.
  • It helps to change market conditions, promote sustainable economic growth.
  • It creates new jobs by attracting foreign industries via Foreign Direct Investment (FDI).

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