Question

How did the trade policy implemented in 1991 stimulate globalization in India? Explain with examples.

Hint:

Economic reforms of 1991 transformed India’s economy by integrating it with the global market through liberalization and FDI.

Answer 1

1. Liberalization: Reduced restrictions on imports, leading to increased foreign goods in Indian markets.
2. Privatization: Reduced government control over industries, allowing private companies to expand globally.
3. Foreign Direct Investment (FDI): Allowed multinational companies (MNCs) like Coca-Cola and Samsung to invest in India.