In your opinion, will the long-term benefits of liberalisation exceed its costs? Give reasons for your answer.

The liberalisation has brought following benefits to the Indian economy –

• The Indian economy has witnessed growth and opened up its market for foreign companies.

• Increased foreign direct investment has helped in economic growth and generation of employment.

• Privatisation has increased the efficiency of companies and has reduced the government burden of running these companies.

At the early stage of liberalisation, it has faced many criticism and many people said that it is just like welcoming another East India Company.

As per my opinion if we do cost and benefit analysis of the liberalisation, the benefits are so very much that they can easily overshadow the disadvantages and cost related to it.