what was the thinkng behind that policy which restrict foreign trade before 1991.
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The economic liberalisation in India refers to the changes and reforms, initiated in 1991, of the country's economic policies, with the goal of making the economy more market- and service-oriented, and expanding the role of private and foreign investment.
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Earlier India was afraid of global companies and facilitated government to ensure high tariff barriers.
The idea behind the new economic model known as Liberalization, Privatization, and Globalization in India (LPG), was to make the Indian economy one of the fastest growing economies in the world.
Post 1991, India faced the worst economic crunch in terms of its FOREX reserves. Foreign exchange crunch made India close to defaulting on loans.
P V Narasimha Rao assumed office as PM on 21 June 1991, and Manmohan Singh as FM, three days later.
Critical decisions were made within one month. Exchange rate adjustments were announced on 1 and 3 July. Gold from the reserve assets of Reserve Bank of India (RBI), to raise $400 million, was shipped out soon thereafter.
Hope it helps you....m☺️☺️
The idea behind the new economic model known as Liberalization, Privatization, and Globalization in India (LPG), was to make the Indian economy one of the fastest growing economies in the world.
Post 1991, India faced the worst economic crunch in terms of its FOREX reserves. Foreign exchange crunch made India close to defaulting on loans.
P V Narasimha Rao assumed office as PM on 21 June 1991, and Manmohan Singh as FM, three days later.
Critical decisions were made within one month. Exchange rate adjustments were announced on 1 and 3 July. Gold from the reserve assets of Reserve Bank of India (RBI), to raise $400 million, was shipped out soon thereafter.
Hope it helps you....m☺️☺️
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