Question

What are the essential features of Liberalisation?

Options

• Abolition of licenses

• Augmentation of Production

• Removal of trade restrictions

• All of the above

Answer 1

All of the above

Explanation - 

In India, industrial liberalisation took the following form.

1. Abolition of licenses : The licence requirement for the establishment of industries was eliminated. The licencing system was kept only for six industries: liquor, cigarettes, defence equipment, dangerous chemicals, industrial explosives, and drugs and pharmaceuticals.
2. Augmentation of Production :  Enterprises gained control over the scale and size of production, as well as the price of their products. The MRTP companies (companies with assets worth more than Rs 100 crore) were free to scale up their operations in response to market conditions.
3. Removal of Trade Restrictions : To facilitate the movement of goods and services, various trade restrictions such as quantitative restrictions, customs, duties, tariffs, and so on were removed.