The Market as a Social Institution — Sociology STD 12 Humanities — Question

Liberalisation is the process whereby state control over economic activities are minimised and left to the market forces to decide. In general, it is process of making laws more liberal and loosening of government rules and regulation on capital labour and trade; privatisation of public sector enterprises selling government around companies to private companies, a reduction in tariffs and import duties so that foreign goods can be imported more easily.

• It includes privatisation of public sector enterprises.
• It allows easier access for foreign companies to set up industries in India.
• This is also known as marketisation or market based process to solve economic, social or political problems.