3. Lack of liberalisation in factor market has ailed the Indian economy for long. Elucidate. (15 Marks)
कारक बाजार में उदारीकरण की कमी ने भारतीय अर्थव्यवस्था को लंबे समय तक प्रभावित किया है। स्पष्ट करें।
Approach-
Candidates need to elucidate/highlight how the lack of liberalisation in factor market has ailed the Indian economy for long.
Introduction:
Economic liberalization refers to the process of removing non-essential limitations and controls from a country’s economy so that firms and enterprises can contribute to the economy to the fullest possible extent. However, it’s crucial to remember that liberalization does not imply an unfettered economy. Prime Minister P. V. Narasimha Rao and his then-Finance Minister, Dr. Manmohan Singh began the process of economic liberalization in India in 1991.
Lack of liberalisation in factor market has ailed the Indian economy for long
India still had a fixed exchange rate system in 1991, with the rupee tied to the value of a basket of key trading partners’ currencies. India was pushed to the verge of bankruptcy. Dr. Manmohan Singh, India’s then-finance minister, gave respond by introducing economic liberalization.
Lack of liberalisation had ailed the Indian economy for long in the following ways:
The key goals of India’s liberalization process can be summarised as follows:
Conclusion:
India’s economic liberalization incorporated the characteristics mentioned above and, in general, removed various limitations to make the country more private sector friendly.
