Question

In your opinion, will the long term benefits of liberalisation exceed its costs? Give reasons for your answer.

Answer 1

The changes that have been made under the liberalisation programme have stimulated economic growth and opened up Indian markets to foreign companies. Increasing foreign investment is supposed to help economic growth and employment. The privatisation of public companies is supposed to increase their efficiency and reduce the government's burden of running these companies.

However, the impact of liberalisation has been mixed. Many people argue that liberalisation have had or will have a negative net impact on India.

As I think, the costs and disadvantages will be more than the advantages and benefits, so as some sectors of Indian industry like software and information technology or agriculture like fish or fruit may benefit from access to a global market, but other sectors like automobiles, electronics or oilseeds will lose because they cannot compete with foreign products and producers.