Which of the following is NOT one of the objectives of Liberalisation?

Question

Question

This question was previously asked in

RRB NTPC CBT 2 (Level-3) Official Paper (Held On: 17 June 2022 Shift 2)

Answer 1

The correct answer is To mitigate the effects of the technology and foreign capital.

Key Points

Liberalisation
- The phrase "liberalisation" refers to the removal of limitations on a range of private individual activities, frequently related to the economy.
- Commonly, it refers to a government removing constraints it had previously put on economic or social policy.
- India's economic reform was aided by its 1985 balance of payments crisis.
- Due to the crisis, the nation was unable to cover both its debt obligations and necessary imports.
- Liberalization in India was started by ministers like Atal Bihari Vajpayee, Manmohan Singh, and P.V. Narasimha Rao.
- Objectives of Liberalisation
  - To address the growing balance of payment crisis in India.
  - To increase the private sector's involvement in the growth of India's economy.
  - To boost the amount of foreign investment made in Indian enterprises.
  - To encourage domestic Indian corporate competitiveness.
  - To encourage domestic and international businesses to grow in order to maximise India's economic potential.
  - To help the Indian economy transition to a global economy.
  - To control imports and export and encourage international trade.

Additional Information

Although there had been unsuccessful attempts in 1966 and 1980, India's liberalisation project ultimately took off in 1991.
The idea of economic liberalisation was adopted in India in order to achieve a number of goals, including industrialisation, a greater role for private and international investment, and the establishment of a free market economy.
A number of important industries that were previously only accessible to the public sector have reduced their restrictions for private companies.
After the introduction of liberalisation, India experienced the following improvements:
- All prohibitive barriers to international investing were eliminated.
- In India and other large countries, capital flowed unrestrictedly.
- Ever since the economy was liberalised, the Indian stock market has increased.
- Politics-related dangers decreased.
- The investors were spread out.