Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
4) What do you mean by liberalization? How does it affect the international business environment?What led to Liberalisation of Indian economy? Discuss.(250 words)
Indian Economy by Dutt and sundaram
Why this question:
The question is direct from GS paper III, it seeks to examine the effects of liberalization on international business environment and the causative factors responsible for liberalisation of Indian economy.
Key demand of the question:
The answer must discuss in detail what is liberalization, effects of it on international business environment, and the factors responsible for liberalisation of the Indian economy.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Describe what is liberalization.
The answer should discuss the following points:
Explain what you understand by liberalization?
What are the major goals of economic liberalization?
What is the importance of Liberalization?
Then discuss that the economic liberalization in India refers to the changes and reforms, initiated in 1991, of the country’s economic policies, with the goal of making the economy more market- and service-oriented, and expanding the role of private and foreign investment.
Explain its effect on international business environment.
Conclude with way forward and reassert the significance of it.