Q.What is Liberalization?

Liberalisation is the process of removing or reducing government controls, licences and restrictions on business and trade so that markets and the private sector can function more freely; it was a central feature of India's 1991 reforms.

This is a 2-mark short note in the AP Intermediate 2nd-year Economics reforms (LPG) unit.

Liberalisation refers to relaxing or removing the many controls and regulations that the government had placed on economic activity. In India, as part of the 1991 reforms, liberalisation meant abolishing industrial licensing for most industries, reducing restrictions on the expansion of firms (dilution of the MRTP Act), easing controls on imports, exports and foreign investment, and freeing interest rates and financial markets. Its aim was to let market forces and the private sector operate more freely, increase competition and eff …