Liberalization is the “willingness to respect or accept behaviour or opinion different from one’s own; open to new ideas”. Liberalization is the process of liberating the economy from various regulatory mechanisms and elimination of customs and tariffs. Economic liberalization is the policy of relaxation over economic and trade policies.

Importance of liberalization are as follows:

1. Consumer-friendly: This leads to lower costs and prices for consumers to get the goods and services according to their wishes. There are many number of companies which bring lots of quality products to suit the consumer’s interests and demands. In liberalised economy, consumer gets more benefits.

2. Free from government regulations: Government provides free movement of ‘ trade and commerce where any private company can easily carry on their business activities without any restrictions. The companies need not undergo any procedural delay by the government.

3. Promotes competition: Liberalisation extends competition within different company’s trade firms. Basically, they maintain the. standards but offer lower prices for the consumers. Competition promotes efficiency and avoids wastage of resources.

4. Promotes world business class: Liberalization provides the business class and opportunity to share their knowledge and exchange technology with confidence at the international level. Business firms can learn and earn at global level. They can enrich their knowledge by equipping new machinery and tools for better performance as per international standards.

5. Provides for more private funding agencies: Liberalization allows financial markets to provide loans to companies which previously were not able to access, loans that they can pay off, and it allows more financial private funding agencies like ICICI, HDFC and HSBC.

6. Improve the economy: ‘ Liberalization is expected to improve nation’s GDP growth. It helps nation’s economic development and improves the standard of living in a shorter period. Most of the developing nations adopt liberalised economy.

7. Promotes technological advancement: Liberalisation makes new changes in an advanced technology and logistics for better services. That can be useful to save time, energy and money. It promotes for high quality of products and making the supplies in time.