Choose the given statement is True/False

Liberalisation has not changed the Indian economy.

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True

False

answer is B.

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Detailed Solution

The given statement is false. Liberalisation of the economy means freeing it from government control and restrictions. The Indian government decided to liberalise the economy in 1991. Before 1991, the government exempted only three industries from licensing. After the liberalisation, producers require a licence for running only a few selected industries. The government has removed many restrictions on the producers. They are free to expand their businesses and produce any quantity. The producers can import raw materials and machinery from abroad. They can also import any technology. Before 1991, there were many restrictions on firms, and the removal of such barriers has enabled Indian firms to survive and earn profits in the competitive world market. Firms can freely expand their production capacity now.
Thus the correct statement would be Liberalisation has changed the Indian economy.

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