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Question : 52
Total: 52
Government introduced a set of stablisation and structural reforms to solve the economic crisis. State the key initiatives and objectives of these policies adopted by the Government of India.
Solution:
Key Initiatives of Economic Reforms:
(i) Liberalisation: It refers to opening of economic border for MNC's and foreign investment in the economic activities of the country with the aim of development of various sector. For e.g., abolition of licensing system.
(ii) Privatisation: It is the process of involving the private sector in the ownership or management of PSUs.
(iii) Globalisation: It means integrating the economy of a country with the rest of the world. For e.g., Foreign Direct Investment.
Objectives of Economic Reforms:
(i) To Correct deficit BOP: To correct the situation of deficit BOP, India approached IMF for a loan of 7 billion dollar on the condition of economic reforms in the country.
(ii) To Increase foreign investment: Globalisation increased openness and economic interdependence on the world economy. It helped to increase foreign investment from rest of the world.
(iii) To Increase Competition: Privatisation and disinvestment induced the private sector to expand its role. It increased competitiveness in the economy.
(i) Liberalisation: It refers to opening of economic border for MNC's and foreign investment in the economic activities of the country with the aim of development of various sector. For e.g., abolition of licensing system.
(ii) Privatisation: It is the process of involving the private sector in the ownership or management of PSUs.
(iii) Globalisation: It means integrating the economy of a country with the rest of the world. For e.g., Foreign Direct Investment.
Objectives of Economic Reforms:
(i) To Correct deficit BOP: To correct the situation of deficit BOP, India approached IMF for a loan of 7 billion dollar on the condition of economic reforms in the country.
(ii) To Increase foreign investment: Globalisation increased openness and economic interdependence on the world economy. It helped to increase foreign investment from rest of the world.
(iii) To Increase Competition: Privatisation and disinvestment induced the private sector to expand its role. It increased competitiveness in the economy.
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