Effects of Liberalisation on the Indian Economy
After the implementation of the Liberalisation policy in 1991, there are many effects observed on the Indian economy which are positive and improved the financial situation of the country. The effects of Liberalisation on the Indian economy are as follows:
- It increased employment opportunities for the people as more jobs were available in the market due to foreign direct investment.
- It reduced the monopoly of the Government sector, as many services and products started becoming available by foreign companies.
- Increased foreign direct investment in the country in various sectors.
- The debt burden of the country was also decreased.
- Reduction in the interest rates.
Due to the Liberalisation policy, there was increased dependence on foreign technology and exchange.