Question

Major steps taken by indian government taken towards globalisation

Answer 1

Measure 1: Import Liberalization:

For liberalizing foreign trade, import controls through licensing was abolish

Measure 2# Imports of Gold and Silver:

Imports of Gold and Silver have been considerably liberalized. This reduced the incentive for smuggling.

Measure 3# Market-Determined Exchange Rate:

An important measure in external sector was to devalue the rupee in July 1991 and after about 2 years in 1993 exchange rate was changed from basket based pegged exchange rate system to market-determined exchange rate. With this the exchange rate of the rupee today is determined by demand and supply conditions in the foreign exchange markets

Measure 4# Convertibility of Rupee:

Another important reform for globalizing the Indian economy was the convertibility of rupee on balance of payments on current account. This implies the importers can get their required quantity of foreign exchange by converting their rupee resources into dollars from the foreign exchange market. The exporters do not have to surrender their foreign exchange (US dollar or EU Euro) earned abroad to RBI but can now sell them in the foreign exchange markets.

Measure 5# Liberalisation of Foreign Investment:

The new economic policy adopted since 1991 considerably liberalized the scope of foreign investment, both direct and portfolio. Earlier investment by foreign companies required prior approval of the government and was restricted to 40 per cent equity participation and was also subjected to the conditions of technology transfer to India. Besides, foreign investment was permitted in priority areas only. Foreign portfolio investment was allowed mainly into a limited number of public sectors bond issues.

Answer 2

Answer:

One step toward globalisation is the liberalisation of imports through the removal of tariff and non-tariff barriers and the facilitation of foreign direct investment (FDI) and foreign portfolio investment (FPI).

Explanation:

• Government may protect its citizens from unfair globalisation by making sure however that the nation's labour laws are upheld to prevent worker exploitation.
• enabling small producers to increase their output so they may continue to be profitable despite MNC competition.

• The government unveiled its five-year, or 1992–1997, international trade strategy. also this policy's only objective was liberalisation.

government By enacting laws that serve to advance the interests of everyone in the nation, not only the wealthy and powerful.

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