What measures have been taken for globalisation of Indian economy?
What measures have been taken for globalisation of Indian economy?
The following measures have been taken for globalisation of Indian economy:
(i) Increase in Equity Limit of Foreign Investment: Equity limit, in general, has been raised from 40% to 51. Also, in 47 high priority industries and in export trading houses, Foreign Direct Investment (FDI) is allowed upto the extent of 100%
(ii) Partial Convertibility: It means sale and purchase of foreign currency at a price determined by the market forces fo demand and supply.
It is called partial convertibility because it is allowed 100% in current account transactions but it is only 51% for capital account transactions.
(iii) Liberal foreign Trade Policy: A long term liberal trade policy has been implemented which encourages free trade policy has been implemented which encourages free trade among countries.
(iv) Reduction in Tariffs: Customs duties have been reduced drastically. Prior to 1991customsom duties were as high as 400% but after 1991, the maximum rate of duty is just 10%.
(v) Withdrawal of Quantitative Restrictions: The quantitative restrictions on all import items have been totally withdrawn from 2001, in conformity with the guidelines issued by the World Trade Organisation (WTO).
The following measures have been taken for globalisation of Indian economy:
(i) Increase in Equity Limit of Foreign Investment: Equity limit, in general, has been raised from 40% to 51. Also, in 47 high priority industries and in export trading houses, Foreign Direct Investment (FDI) is allowed upto the extent of 100%
(ii) Partial Convertibility: It means sale and purchase of foreign currency at a price determined by the market forces fo demand and supply.
It is called partial convertibility because it is allowed 100% in current account transactions but it is only 51% for capital account transactions.
(iii) Liberal foreign Trade Policy: A long term liberal trade policy has been implemented which encourages free trade policy has been implemented which encourages free trade among countries.
(iv) Reduction in Tariffs: Customs duties have been reduced drastically. Prior to 1991customsom duties were as high as 400% but after 1991, the maximum rate of duty is just 10%.
(v) Withdrawal of Quantitative Restrictions: The quantitative restrictions on all import items have been totally withdrawn from 2001, in conformity with the guidelines issued by the World Trade Organisation (WTO).
