Economic Policy of India Since 1991 — Economics STD 11 Commerce / Arts — Question

Globalization means the interaction of the domestic economy with the rest of the world with regard to foreign investment, trade, production, and financial matters.Measures were taken for Globalisation:

• Removal of quantitative restrictions: To make the Indian economy attractive to foreign investors, the government has reduced custom duties and tariffs imposed on imports and exports.
• Encouragement to foreign capital: To India, foreign investment has wider scope since 1991. Foreign capital is allowed in India without any restrictions.
• Convertibility of Rupee: It means Indian currency can be converted into the currency of other countries.
• Foreign collaboration: To take the benefit of advanced technology, Indian companies are allowed to enter into foreign collaboration e.g. Maruti-Suzuki, Hero-Honda, etc.
• Long-term trade policy: The trade policy was introduced for a longer duration to promote foreign trade.
• Encouragement to export: Many incentives have been given to industries through EXIM policy. SEZ and AEZ are created to encourage export.