Welcome Back to our new series of business learning.
In this article we will understand Liberalisation.
Liberalization is a new economic policy by which efforts are made to establish such an economic environment in the country, in order to develop the country’s business and industry independently.
Liberalization is meant to reduce the restrictions on business and industry, so that businessmen and entrepreneurs do not have to face any kind of gestures.
Liberalization has revolutionized the business world and has provided tremendous opportunities for all countries.Liberalization is the result of the new industrial policy that eliminates the “licensing system”.
So in this way we can say that by liberalizing business policy by the government, which is removing tariffs, subsidies and other restrictions on the flow of commodities and services between countries, it is known as liberalization
There have been some major impacts on the business and industry of liberalization:
Emancipation of Technology: – The industries with the highest priority under the liberalization policy are not required to seek permission from the government to import technology from abroad.
Freedom of expansion of industries: – There is no need to seek permission from the government for expansion of the existing industries under the liberalization policy.
End of Industrial Licensing and Registration: – The system of registration of industries under the liberalization policy has been abolished. Because of which, all the industries except 6 industries have been released from licensing.
These industries are: –
Increase in investment limit of small scale industries: – The investment limit of small scale industries has been reduced to Rs. 1 crore and the investment limit of small scale industries increased to Rs. 25 lakhs. Has been done.
Freedom of import of capital goods: – The existing industries, under the liberalization policy, do not have to take permission from the government to import capital goods from abroad.