Liberalisation of economy results in:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Privatisation of economy
Option (3) Privatisation of economy — Correct. Liberalisation includes a range of policies, and the first of them is the privatisation of public sector enterprises, that is, selling government-owned companies to private companies. In this way more of the economy passes into private hands.
NCERT (2025-26): “Debate on Liberalisation – Market Versus State … The globalisation of the Indian economy has been due primarily to the policy of liberalisation that was started in the late 1980s. Liberalisation includes a range of policies such as the privatisation of public sector enterprises (selling government-owned companies to private companies); loosening of government regulations on capital, labour, and trade; a reduction in tariffs and import duties so that foreign goods can be imported more easily; and allowing easier access for foreign companies to set up industries in India. Another word for such changes is marketisation, or the use of markets or market-based processes (rather than government regulations or policies) to solve social, political, or economic problems. These include relaxation or removal of economic controls (deregulation), privatisation of industries, and removing government controls over wages and prices.…” |