Q.What do you mean by Liberalisation ?

Liberalisation is the process of removing or reducing government controls, licences and restrictions on business and trade so as to give the private sector and market forces greater freedom, forming a key part of the 1991 reforms. Liberalisation is one of the three pillars of India's 1991 economic reforms (the LPG policy) studied in the Tamil Nadu HSC Commerce syllabus. - Meaning: it is the relaxation or abolition of the many restrictions, controls and regulations that the government had earlier imposed on business and the economy. - Main measures: abolition of the industrial licensing system for most industries, reduction of the role reserved for the public sector, freeing of interest rates and easing of restrictions on the movement of goods and capital, reduction of import duties, and opening the economy to foreign trade and investment. - Aim: to make Indian industry more competitive and efficient by letting market forces, rather than government controls, guide production, investment and prices. - Effect: greater freedom for entrepreneurs, easier entry of privat …