Answer:
Liberlisation of the economy means to free the trade from direct or physical controls imposed by the government. The four effects of liberalisation on the Indian economy are: (i) The Indian government took on the basis of perception, membership of WTO (World Trade Organisation). (ii) It was thought that WTO would protect India from the pressures of stronger trading partners as WTO?s rules envisage non-discrimination in the form of national treatment and most favoured nation (MFN) treatment to India?s exports in the market of other WTO members. (iii) It was said that members would not discriminate tarrif regimes among various WTO members as also would honour their respective rules, regulations, and incentives etc. (iv) However, in implementation, WTO agreements did just contrary to what was envisaged in its rules.
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