Question
What are the main arguments made for and against liberalization?
Solution
Arguments for:
- The policy of liberalisation is mainly responsible for the globalization of the Indian economy. This process begain the late 1980s.
- Due to liberalisation reduction in tariff and import duties was made. Now foreign goods can be imported easily.
Arguments against:
- Small manufacturers cannot face global competition. The foreign goods and brands are in the market, therefore, local goods and brands have gone way behind.
- The process of Privatisation has led to loss of employment in some sectors.
