Liberalization

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.

Download Daily Current Affairs of 12th May 2021

Khyati Khare

Plutus IAS Current Affairs Team

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