Question

How did the trade policy implemented in 1991 stimulated the globalization in India? Explain with example.

Answer 1

1. The 1991 trade policy promoted globalisation in India by opening the economy to foreign investment, especially from multinational corporations (MNCs).
2. These investments strengthened sectors such as electronics, automobiles, and services, creating employment and improving living standards.
3. Indian companies adjusted by adopting modern technologies and collaborating with foreign firms.
4. At the same time, the IT sector expanded rapidly, with India offering outsourced services like call centres, data entry, and accounting to developed countries, thereby supporting economic growth.