Question

‘Globalisation is an essential outcome of liberalisation of an economy’.

Justify the given statement with a valid explanation.

Answer 1

1. Globalisation is indeed an essential outcome of liberalisation of an economy. The removal or reduction of restrictions in the industrial sector, financial sector, trade and investment policy etc. opened the doors of the Indian economy to the rest of the world.
2. Hence, liberalisation acted as a catalyst for globalisation. It fostered international trade integrating the Indian economy with the global economy.