Liberalisation: The economic reforms that were introduced were aimed at liberalising the Indian business and industry from all unnecessary’ controls and restrictions. They signalled the end of the licence-pemit-quota raj.
Liberalisation of the Indian industry lias taken place with respect to:
- abolishing licensing requirement in most of the industries except a short list,
- freedom in deciding the scale of business activities i.e., no restrictions on expansion or contraction of business activities
- removal of restrictions on the movement of goods and services,
- freedom in fixing the prices of goods services
- reduction in tax rates and lifting of unnecessary controls over the economy,
- simplifying procedures for imports and experts, and
- making it easier to attract foreign capital and technology to India.
