What are the differences between policy of restriction and policy of liberalization ? 

Dear student, 
According to the restrictive policy the private sector was accorded only a restricted role. The role was only complementary to that of the public sector. it was directly controlled by the government. Even the goods and services that could be produced by the private sector was decided by the government. In addition there were limits on the production by the private sector. Moreover, the establishment of any new industry or expansion of a new industry required permission from the government. Thus, the private sector was under complete control of the government.

On the other hand, under the policy of liberalisation, the system of licensing was abolished (except for six industries). Moreover, the number of  industries that were exclusively reserved for the public sector were reduced. They were also provided greater freedom to import capital goods.  

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