Liberalization

Why it matters

• It shifts the economic framework from a command-based system to a market-oriented approach, fostering competition and efficiency.
• It facilitates the integration of the domestic economy into the global market by encouraging foreign direct investment and technological exchange.
• It aims to enhance consumer choice and industrial productivity by minimizing bureaucratic hurdles and state intervention.

How it is asked

Focus on the structural shift from the License-Permit Raj to a market-driven economy, the impact on fiscal policy, and the subsequent challenges regarding regulatory oversight and social equity.