8/8/2019 eco_data

1/2

India launched its market-oriented economic reforms in 1991For this task Narasimha Rao appointed Manmohan Singh as a special economical adviserto implement liberalisation.The economic liberalisation in India refers to economic reforms in India that started in 1991during the financial term of manmohan singh .During that period finance ministerManmohan Singh started breakthrough reforms. The

new neo-liberal policies included opening for international trade and investment, deregulation,initiation ofprivatization , tax reforms, and inflation-controlling measures .

Liberalisation has done away with the Licence Raj (investment,industrial and import licensing)and ended many public monopolies, allowing automatic approval offoreign direct investment inmany sectors.

These helped in reducing the fiscal deficit, privatization of the public sector, and increasinginvestment in infrastructureTrade reforms and changes in the regulation offoreign direct investment were introduced to openIndia to foreign trade while stabilizing external loans

Points under reform policies : -

Industrial regulation was rationalized

SEBI is given the legal authority to register and regulate all security marketintermediaries

Reduced tariffs from an average of 85 percent to 25 percent

The rupee was made convertible on trade account.

Encouraging foreign direct investment by increasing the maximum limit on shareofforeign capital injoint ventures from 40 to 51 percent with 100 percent foreignequity permitted in priority sectors

in 1992 , India's equity markets were opened to investment by foreign institutionalinvestorsand

permitting Indian firms to raise capital on international markets by issuing GlobalDepository Receipts ( GDRs )

Marginal tax rates were reduced.

Privatization of large, inefficient and loss-inducing government corporations was initiated.

The overall direction of liberalisation has since remained the same, irrespective of the ruling party

the main objective of the Dr. Manmohan singh behind these reforms was to transformthe economic system from socialism to capitalism so that to achieve high economicgrowth and industrialize the nation for the well-being of Indian citizens. Today India is mainlycharacterized as a market economy because of this strategy .

advantages :

http://en.wikipedia.org/wiki/Narasimha_Raohttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/Microeconomic_reformhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Neoliberalismhttp://en.wikipedia.org/wiki/Deregulationhttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/Licence_Rajhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Fiscal_deficithttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Foreign_tradehttp://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_Indiahttp://en.wikipedia.org/wiki/Rupeehttp://en.wikipedia.org/wiki/Trade_accounthttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Foreign_capitalhttp://en.wikipedia.org/wiki/Joint_ventureshttp://en.wikipedia.org/wiki/Foreign_equityhttp://en.wikipedia.org/wiki/Foreign_equityhttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Foreign_institutional_investorshttp://en.wikipedia.org/wiki/Foreign_institutional_investorshttp://en.wikipedia.org/wiki/International_marketshttp://en.wikipedia.org/wiki/Global_Depository_Receipthttp://en.wikipedia.org/wiki/Global_Depository_Receipthttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Government_corporationshttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Socialist_economicshttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Industrializehttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Narasimha_Raohttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/Microeconomic_reformhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Neoliberalismhttp://en.wikipedia.org/wiki/Deregulationhttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/Licence_Rajhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Fiscal_deficithttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Foreign_tradehttp://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_Indiahttp://en.wikipedia.org/wiki/Rupeehttp://en.wikipedia.org/wiki/Trade_accounthttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Foreign_capitalhttp://en.wikipedia.org/wiki/Joint_ventureshttp://en.wikipedia.org/wiki/Foreign_equityhttp://en.wikipedia.org/wiki/Foreign_equityhttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Foreign_institutional_investorshttp://en.wikipedia.org/wiki/Foreign_institutional_investorshttp://en.wikipedia.org/wiki/International_marketshttp://en.wikipedia.org/wiki/Global_Depository_Receipthttp://en.wikipedia.org/wiki/Global_Depository_Receipthttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Government_corporationshttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Socialist_economicshttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Industrializehttp://en.wikipedia.org/wiki/Market_economy

8/8/2019 eco_data

2/2

total foreign investment (including foreign direct investment, portfolio investment, andinvestment raised on international capital markets) in India grew from US$132 million in199192 to $5.3 billion in 199596

Cities like Gurgaon,Bangalore, Hyderabad,Pune and Ahmedabad have risen ineconomic importance, became centres of rising industries and destination forforeigninvestmentand firms.

http://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Portfolio_investmenthttp://en.wikipedia.org/wiki/International_capital_marketshttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Industrieshttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Portfolio_investmenthttp://en.wikipedia.org/wiki/International_capital_marketshttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Industrieshttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Foreign_investment