Question

Explain the measures undertaken for globalisation.

Answer 1

1. Removal of quantitative restrictions: To promote globalisation, all the quantitative restrictions have removed on imports and exports. Further traffic rates have been brought down considerably. Similarly, the imports duty on industrial goods has been reduced.
2. Encouragement to foreign capital: Government has opened the economy to foreign investments. As a result, foreign capital is attracted to various sectors in India. As its effect, the Indian economy has become a part of the global economy.
3. Convertibility of rupees: To promote globalisation, the exchange rate of rupees has been made flexible. The rupee is made fully convertible to all current account transactions.
4. Foreign collaboration: Indian companies are allowed to enter into important foreign collaboration, For example, Maruti-Suzuki, Hero Honda, Tata-Corus deal of iron and steel in South Africa.
5. Long term trade policy: To ensure a longer duration in foreign trade, changes were made in the foreign trade policy.
   The main features of this policy included:
   
   1. Liberalised policy.
   2. Removal of restrictions on foreign trade.
   3. Encouragement to Foreign Collaboration.
6. Encouragement to Exports: Through EXIM policy, various incentives are given to exporters. Special Economic Zones, Agro-Export Zones (AEZ) are created to encourage exports.