Explain the Main features of Liberalisation

Features of Liberalisation :
(i) Freedom of opening/starting production units.
(ii) Use of new machines and technology.
(iii) No government interference in production.
(iv) Free flow of foreign investment.

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Features of Liberalisation :
(i) Freedom of opening/starting production units.
(ii) Use of new machines and technology.
(iii) No government interference in production.
(iv) Free flow of foreign investment.
Features of Privatization:
(i) Reduction in extra burden on government.
(ii) Control over poor performance of public sec-tor.
(iii) Check on high-handedness of bureaucracy.
(iv) Disinvestment (sale of shares in PSUs to
public)
Features of Globalization:
(i) It results in integration of world economies that
helps in raising world production.
(ii) It helps in removing inefficiency from industrial
units.
(iii) It helps in improving allocative efficiency of
resources.
(iv) It encourages global competition which reduces
costs and improves quality.

1.Government gradually reduces the restrictions and controls imposed on private sector and encourages economic development .
2. There was reservation for 18 industries.For the industries other than them , compulsion to take government permission was eliminated .
3. Areas other than railways , atomic energy and defence were opened for private sector .
4. Tradition of compulsory registration for industries was cancelled .
5. Provision to take government permission for setting up industries which do not cause pollution and are not hazardous for environment was cancelled .
• As a result of liberlization , private sector has got an opportunity to make unconstrained development which led to increase in production .

Liberlization of the indian economy contained the following features:

a. The economic reforms that were introduced were aimed at liberalizing the Indian business and industry from all unnecessary controls and restrictions.
b. They indicate the end of the license-permit-quota raj.
c.?Liberalization of the Indian industry has taken place with respect to:
(i) Abolishing licensing requirement in most of the industries except a short list,
(ii) Freedom in deciding the scale of business activities i.e., no restrictions on expansion or contraction of business activities,
(iii) Removal of restrictions on the movement of goods and services,
(iv) Freedom in fixing the prices of goods and services,
(v)?Reduction in tax rates and lifting of unnecessary controls over the economy,
(vi)?Simplifying procedures for imports and exports, and
(vii) Making it easier to attract foreign capital and technology

1. To Liberalise imports and exports
2. For free flow of goods and services
3. Freedom for price determination
4. Freedom for expansion and contraction of industries
5. To remove tarrif barriers and quotas

The aim of liberalisation is to remove trade barriers with consist of both domestic market and foreign market

Concept of Liberalization
The concept of liberalization is introduced in the early 1990s in India. At that time powerful changes happen in Indian economic structure. In addition, most of the international companies that work in India are from that time. With the start of liberalization, many companies face serious competition for the first time. Also, companies that monopolize the market at that time start getting competition.

Characteristics of Liberalization
The characteristics of liberalization contain some strong benefits that help in the growth of companies. Firstly, it encourages economic growth of private sector companies. Also, it simplifies the regulation, policy, and tax structure. Liberalization facilitates Foreign Direct Investment, which also forces public sector companies to restructure themselves for efficiency. In addition, it provides motivation for export and allows more imports of capital goods and technology. Besides, it moves away from the protection of small scale industries.

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Following are the main feature of liberalisation
1. To do abe with the necessity of having a licence for most of the industry
2. Freedom in determining the scale of business activity
3. Removing restriction for the movement of goods and service from one place to another
4. Freedom to fix the price of good and services
5. Freedom for unnecessary control over economy
6. Simplifying import export procedure
7. Simplifying the process of attracting foreign capital and technology

Features of Liberalisation :
(i) Freedom of opening/starting production units.
(ii) Use of new machines and technology.
(iii) No government interference in production.
(iv) Free flow of foreign investment.

Thanks

1. To remove controls and restrictions and open various sectors of the economy.
2. No interference of govt.

Free flow of foreign investment

          Features of Liberalisation :
(i) Freedom of opening/starting production units.
(ii) Use of new machines and technology.
(iii) No government interference in production.
(iv) Free flow of foreign investment.