question_answer

'It is the process by which government's control over the industry is being loosened.? Identify the process and state the reforms (any four) introduced under this process.

Answer:

The process referred in the stated line is liberalisation. It refers to the process through which government controls and restrictions over the industry are being loosened. Economic liberalisation involves deregulation of the economy and greater autonomy of operations to the private sector and foreign companies. The purpose of liberalisation is to unlock the economic potential of the country by encouraging the private sector and multinational corporations to operate and expand freely. The reforms introduced under liberalisation were: (i) Abolishing licensing in most of the industries. (ii) Freedom in deciding the scale of business. (iii) Freedom in deciding prices of goods and services. (iv) Reduction in tax rates and unnecessary government controls.