Question
What are the economic consequences of liberalisation in India ? Explain.
Answer :
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The economic consequences of liberalization in India have been substantial, marking a transformative shift in the country's economic landscape. In the early 1990s, India initiated a series of economic reforms aimed at liberalizing its economy, moving away from a centrally planned model to one that embraced market-oriented policies. Here are some key economic consequences:
1. Increased Foreign Direct Investment (FDI): Liberalization opened up various sectors to foreign investment, attracting FDI. This influx of foreign capital has facilitated economic growth, technological advancements, and the creation of jobs.
2. Growth in Services Sector: The services sector,
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