Skip to main content

Concept /Advantages /Disadvantages of Liberalisation

Concept of Liberalisation :-
Progressive elimination of government control over economic activities is known as "liberalisation".
Liberalisation refers to freedom to business enterprises from excessive government control and they are given freedom to make their own decisions regarding production, consumption, pricing, marketing, borrowing, lending & investments.
The major elements of Liberalisation in India includes the followings :
1. De-licencing of industries :-
   The Industrial Policy 1991 abolished (cancelled), licencing for most industries which helped Indian companies to concentrate on productive activities.
The 6 industries that required licencing are alcohol, cigarattes, industrial explosives, defence product, drugs & pharmaceuticals, hazardous chemicals, etc.
2. Liberalisation of foreign investment :-
   The necessity to obtain approval for foreign investment from various government authority often caused delayed. At present FDI is 100 % in certain sectors such as infrastructure, exports, hotels, tourism, etc. The Liberalisation of FDI has resulted in certain benefits such as increased in inflow of foreign capital, Development of skills of Indian personnels due to foreign MNCs training transfer of technology by foreign partners to Indian firms.
3. Liberalisation of foreign technology imports :-
   The liberalized import of foreign technology led to technological improvement in Indian industries. This helped in getting automatic permision for foreign technology imports and no permision was required for hiring foreign technitians & foreign technology testing.
4. Liberalisation of industrial location :-
   The Industrial Policy 1991 stated that, there is no need to obtain approval from central government for industrial location. This enabled the Indian firms to set up industries at a right location of their choise without much interference from government authority.
5. Liberal taxation :-
   The government of India has introduced liberal reduction in taxation rates on direct tax & indirect tax, customs, excise, service which has greatly benefited the firms operating in India.
Advantages of Liberalisation :-
1. Increase in foreign investment.
2. Increase in efficiency of domestic firms.
3. Rise in the rate of economic growth.
4. Control of price.
Disadvantages of Liberalisation :-
1. Increase in unemployment.
2. Loss to domestic unit.
3. Increased dependence on foreign nation.
4. Unbalanced development of sectors.
Labels:

Comments

Post a Comment

Popular posts from this blog

What is Migration? || Types / Causes / Effects of Migration ||

I ntroduction :- Migration means movement or shift of people from one place to another. People move from one place to another for temprary or permanent settlement due to social,political & religious reasons. Globalisation has made migration of people easy & common. T ypes of Migration :- The following are the different types of migration :- 1 . Local Migration :- It involves movement of people from one locality to another. 2 . Regional Migration :- It involves movement of people from one region to another. 3 . Rural to Urban Migration :- It involves movement of people from rural areas to cities areas due to industrialization. 4 . Urban to Rural Migration :- It involves movement of people from urban areas to rural areas due to higher cost of urban living. 5 . Mars Migration :- It refers to the movement of large group of people from one geographical areas to another. 6 . Forced Migration :- It refers to forced movement of people away from their hom...
Post a Comment
Read more

Concept / Advantages / Disadvantages of Globalisation -

Concept of Globalisation :- Globalisation is a process of rapid integration or inter-connection between countries through trade, foreign direct investment, capital flow, migration, & the spread of technology. The main elements of Globalisation includes the followings : 1. Introduction of Foreign Exchange Management Act, 1999 (FEMA) :- The government of India introduced FEMA 1999 to make foreign exchange transactions easier such as obtaining of funds by Indian companies from abroad, overseas investment by Indian firms, holding of properties in India by NRIs, holding of properties by India nationals abroad. 2. Reduction in custom duties :- The government of India reduced the custom duties. The reduction in import duties has resulted in cheaper import into India. 3. Liberalisation of foreign investment :- The government of India has liberalised foreign investment which in turns has given a good boost to Indian capital market. 4. Signing of WTO Agreement :- India...
Post a Comment
Read more

What is Interview?

Introduction:-    An interview is a formal conversation in which both concerned parties attempt to find out if the other party offers something valuable to them. A interview is a meeting between persons for a discussion. It is a conversation with a purpose. An interview is a face to face verbal exchange which endeavours to discover as much information as possible in the least amount of time about some relevant matter. A] Selection Interview/Job Selection:- This type of interview is also known as "Job Interview", "Employment Interview", "Service Interview" etc. The main objective of this interview is to select the right candidate for the right position. Apart from the application letter, curriculum vitae and other documents that a prospective candidate sends the employers, it is essential that a face-to-face meeting take place between the employers and the candidate to check the suitability of the candidate for the position for which s/he i...
Post a Comment
Read more