​difference between pre-liberalisation and post-liberalisation

Dear student,
 

Pre Liberalization Period: In  Indian prior to liberalisation there was extensive regulation in form of “License Raj”. There was slow growth rate. The Indian currency, the rupee, was inconvertible and high tariffs and import licensing prevented foreign goods reaching the market. there were BOP crisis and by increased lending from IMF and World Bank Indian economy got into debt trap.

Post Liberalization Period: The major effect of Liberalization is in the opening of the economy, making it more competitive, the GDP has risen up, There has been stability in BOP. Exports have increased, the licence system has came to an end except in few industies.

Regards

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