Globalization and India

Steps Taken to Globalize Indian Economy

1. Devaluation: To solve the balance of payment problem Indian currency were devaluated by 18 to 19%. 2. Disinvestment: To make the LPG model smooth many of the public sectors were sold to the private sector. 3. Allowing Foreign Direct Investment (FDI): FDI was allowed in a wide range of sectors such as Insurance (26%), defence industries (26%) etc. 4. NRI Scheme: The facilities which were available to foreign investors were also given to NRI's.

Globalization and India

March 1992 Liberalised Exchange Rate Management Introduced 1996 - Disinvestment Commission Established . Foreign Institutional Investment allowed in Unlisted Companies

Globalization and India

July 1991 Liberalisation Privatization Globalization Policy New Economic Policy March 1992 Liberalised Exchange Rate Management Introduced

Globalization and India

1998 - FERA was replace with FEMA

2002 - Indian Companies allowed to invest abroad up to $100 million

Globalization and India

2005 - VAT introduced in the country 2006 - By the end of fiscal 2005-06, exports cross the $100 billion mark