conornicüiberalizarion means abolition of controls in industry and COmmerce delicensing, reduclion in custom duties Qind opening the floors for investment in the country. Dismantling of controls is expected to boost industrial production and revive the economy. The past few Union governments in India have been considering liberalisation favourably in view of the dazzling performance some Asian countries who liberalised their economies during the last two Some of our neighbouring countries like Indonesia,
Malaysia, Thailand and China have registered substantial economic growth due to liberalisation and marketisation of their economies. If India is not to lag far behind these countries, our economists think that we, too, should unshackle our economy from debilitating controls and allow the free interplay of market forces to give incentive to the enterprising entrepreneurs and to attract substantial foreign investment. First three decades after Independence had witnessed increasing investment in public sector enterprises engaged in production of oil, steel, coal, power, cloth, fertilizer electrical and electronic goods.
While very few of them, having administered prices have performed well and earned profits, overall return from the public sector units involving a very huge portion of plan investments has been extra ordinary low or unprofitable. They are also not run on sound commercial lines and are overstaffed. is felt that a number of measures can be initiated to revamp the public sector undertakings by making them compete with private sector units and by overhauling their management systems. Part of the public sector equity can be disinvested for mobilisation of resources toreduce fiscal deficit.
Disinvestment in oil sector and telecomsector has already been made although funds received are not as per theexpectations. Disinvestment in public sector units will be further increased in coming years reducing government share and increasing private share over a period of time. By allowing private sector investors to participate in power, mining and telecom sector, a very substantial and fast upgradation of economic infrastructure can be brought about in a few years.
