Which of the following measures in 1991 helped India integrate with the global economy?
Which of the following measures in 1991 helped India integrate with the global economy?
1991 में निम्नलिखित में से किस उपाय ने भारत को वैश्विक अर्थव्यवस्था के साथ एकीकृत करने में मदद की?
Detailed Solution & Logic
Liberalization of foreign trade policies/विदेश व्यापार नीतियों का उदारीकरण
Liberalization of Trade Policy
Reduction of import tariffs and removal of quantitative restrictions.
Allowed easier access to foreign goods and technology.
Industrial Policy Reforms
Abolition of the License Raj (ending the need for government approval for most industries).
Encouraged private sector participation and competition.
Foreign Direct Investment (FDI) & Technology
Opened up sectors to foreign investors.
Allowed foreign companies to bring capital, technology, and expertise into India.
Financial Sector Reforms
Deregulation of interest rates.
Modernization of banking and capital markets.
Currency & Exchange Rate Reforms
Devaluation of the Indian rupee to make exports more competitive.
Move towards a market-determined exchange rate system.
Privatization & Disinvestment
Reduced government control in public sector enterprises.
Encouraged efficiency and global competitiveness.
Explanation of Impact
These reforms opened India’s economy to the world, shifting from a closed, protectionist model to a more market-oriented one.
Integration with the global economy meant:
Increased exports and imports.
Inflow of foreign capital and investment.
Access to global technology and markets.
Boost in competitiveness and productivity.
In short: The 1991 economic reforms—especially trade liberalization, FDI policies, and currency reforms—were the turning point that helped India integrate with the global economy.
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