Here we are with 500 words Essay on economic liberalization in India describing the meaning of economic liberalization and its benefits as well as negative impacts on Indian economy. Read Essay on economic liberalization in India.
Essay on economic liberalization in India
Economic liberalization, nowadays, this word can be heard everywhere. Our country’s leaders will often mention liberalization in their speeches, as if all the economy of our country depends on this economic liberalization system. What is the meaning of economic liberalization? In exchange for more participation by private entities, reducing government rules and restrictions in the economy is called liberalization. Liberalization policies include partial or complete privatization of government institutions and properties, more labour, market flexibility, lower tax rates for businesses, domestic and foreign capital, open market, etc. Economic liberalization policies were introduced in India in 1991. In which there was a reduction of import duty, regulation of markets, reductions in taxes, and more foreign investment were encouraged. Many economists believe that the policies that India has adopted for economic development have been based on government control and private industry is not affected. As a result, there was no expected progress in economic development of the country.
Public and private sectors have a major role in the development of any progressive country. And from this, the economic process of that country is controlled and counted. Pandit Jawaharlal Nehru also believed that if any country want to be fully developed then it is imperative to develop its major industries. The method of privatization has been adopted by many countries, because there is no special efforts make to increase productivity in the government industries nor the opportunities for competition. But the privatization cannot solve the problem. In privatization, the means of production, welfare and quality of process is in private hands. The aim of privatization is to make maximum profit in the shortest possible time. As a result, they become rich and wealthy, while the labourer is the same. Often, the method of privatization is adopted to meet government losses. Personal property should be privatized only when it helps the nation to reduce the debt.
Today the Indian economy is emerging as a controlled and regulated economy. On 24 July 1991, a new industrial policy was created, whose main goal was to increase employment opportunities, competition opportunities in the public sector, to promote foreign cooperation and partnership, bring openness in the economy etc. Under the current industrial policy, there has been some relaxation in the taxes and legal controls imposed on industries. With the new industrial policy, the growth of production, the development of industrialization competitive power and encouragement to new entrepreneurs will be received, but investment of excessive liberalization and foreign capital will promote many economic inequalities too.
The objective of economic liberalization will be proved in the right sense when the public will get its direct benefit. The policy of liberalization can be successful in making the Indian economy competitive, but this policy must be implemented in a vision, otherwise this policy can be highly harmful to India in economic and cultural terms. The existence of Indian companies will be threatened by the arrival of international companies in India and the dependence on foreign capital and large industrial houses will increase. It is expected that our government will look at every aspect of economic liberalization policy and implement it wisely.