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.