Economic Reforms and Globalization-Impact on India
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One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What year did India initiate its landmark economic liberalization reforms?
India launched its landmark economic liberalization reforms in 1991, under Finance Minister Manmohan Singh, in response to a severe balance of payments crisis.
What was the fiscal deficit of India as a percentage of GDP that prompted the 1991 crisis?
Fiscal deficit exceeded 8 percent of GDP in 1990-91.
What does the term 'LPG reforms' stand for in the context of India's 1991 economic policy shift?
LPG stands for Liberalization, Privatization, and Globalization — the three pillars of India's 1991 economic reform package aimed at integrating India into the global economy.
Which international institution provided a balance of payments support loan to India in 1991?
The IMF provided a structural adjustment loan to India in 1991.
What was the immediate trigger for India's 1991 economic reforms?
India's foreign exchange reserves had fallen to just about two weeks of import cover, forcing the government to pledge gold reserves and seek an IMF bailout, triggering the 1991 reforms.
What is the Mahalanobis model and how did it influence pre-reform India's economic planning?
It prioritized heavy industry investment, shaping India's import-substitution strategy.
What is the FEMA and how did it change the regulatory environment for foreign exchange in India?
The Foreign Exchange Management Act (FEMA), enacted in 1999, replaced FERA and shifted the focus from criminal prosecution to civil penalties, liberalizing foreign exchange transactions for current account purposes.
What is the full form of MRTP Act and why was it amended in the post-liberalization era?
Monopolies and Restrictive Trade Practices Act; amended to allow market competition.
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