What is meant by economic reforms ? Write the measures adopted under economic reforms.

Dear student

The new economic policies started by the government since 1991 to overcome economic crisis and accelerate economic growth are called economic reforms.
Measures adopted for Economic reforms are:

1) Liberalisation; it refers to removing tariff and non tariff barriers of trade.
i) Abolishing of industrial licences.
ii) freedom to import capital goods.

2) Privatisation: it means involving private sectors in ownership or management of state owned enterprises.
i) It includes disinvestment of public sector undertaking
ii) selling of shares of public enterprises.

3) Globalisation: it refers to integration of country's economy with economies of other countries.
i) Increase in FDI limit
ii) reduction in tariffs


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