Unit 4 Ch 4 : Globalization and the Indian Economy — Social Studies STD 10 — Question

Globalisation cannot success without liberalisation because as we need our Indian economy more expanded and to create more profit we need some restrictions and barriers amended by government to be removed.
Globalisation means integrating the economy of the country with the economy of other countries under condition of free flow of trade, capital and movement of people from one place to another.
Liberalisation, which means following a liberal policy in the field of industry and trade, has helped the globalisation process a lot. The main points are as under:

1. As a result of the removal of the barriers of foreign trade and foreign investment the government of India began to follow a liberal policy towards foreign trade, and foreign companies was able to set up their factories and offices here. Also, the Indian Companies are able to set up their factories and offices in other countries.
2. All industries except three industries were exempted from any kind of industries licensing and the industry was now free to import modern technology from other countries, which allowed them for setting up their units guickly.
3. A a result of liberalisation of trade and investment, the Government of India established many Special Economic Zones (SEZs) where all sorts of facilities were made available to foreign companies and relaxation in taxes for an initial period of five years was given.
4. Foreign companies were allowed flexibility in labour laws so that they could employ workers for short periods as per their need.