Liberalization

12 May Liberalization

Posted at 12 May 2021 in Current Affairs by 0 Comments

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Liberation is simply the removal of bureaucratic control on the private sector. It involved the following steps:

De-licensing- It means the removal of Licence Raj. For opening almost any business the entrepreneur required a licence permit from the government. This opened up scope for a lot of corruption.
De-reservation- There are many industrial sectors that were reserved for only the government agency. Private sector was not allowed to invest or start a business in those sectors. In 1991 most of the sectors were open for the private sector except for certain critical areas like atomic energy, space, railways, rare minerals, etc.
De-regulation- It involves reducing the government regulations and interference in the industry and businesses.
Privatisation- Involvement of private sector in public sector companies happens in either form of disinvestment or privatisation.