Short Note on Economic Liberalization in India

Since July 1991 Government of India has introduced series of economic reforms, these reforms are termed as ‘Economic Liberalization’. Government control has been reduced and these reforms have been relying increasingly on market forces. Private sector and foreign companies have been accepted the economic liberalization which involves deregulation of the economy and greater autonomy of operations.

Due to greater autonomy of operations by government liberalization policy, the measures are grouped into internal and external measures.

Internal Measures are

  1. Relaxed licensing system
  2. Relaxation in control over capital issue
  3. Price control and provision of MRTP Act.

External Measures are

  1. Encouraging direct foreign Investment
  2. Easy import of machinery
  3. Encouraging new technology, technological up gradation and foreign collaboration.

Due to these measures, changes have been brought like:

  1. Production of quality products in intensely competitive markets and collective use of resources.
  2. Fast reduction of domestic barriers for imports.
  3. Wide choice of products and services enjoyed by the consumers.
  4. Cost of products, price and quality are with the global markets.
  5. Interferences from government is reduced .

Thus, in this liberalization era, marketing research plays very important role. As we see that due to liberalization the global market for business organization is becoming wider and wider and hence the need of marketing research is increased. Business organisation requires data on various factors related to changes due to liberalisation and this data is collected and analysed by marketing research. In today’s world producer has to produce the productions which are acceptable in this liberalized world. Hence research must be done on likes, dislikes, attitude, test, etc of the global consumer and this task only be taken over by marketing research.

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