India's New Economic Policy and Globalization
A Historical Perspective
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Globalization is an important segment of Indian economy. The globalization not only includes opening up of world trade, development of advanced communication, internationalization of financial markets, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. The term globalization refers to the integration of economies of the world through unrestrained trade and financial flows, as also through mutual exchange of technology and knowledge. Preferably, it also contains free inter-country movement of labour...
Globalization is an important segment of Indian economy. The globalization not only includes opening up of world trade, development of advanced communication, internationalization of financial markets, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. The term globalization refers to the integration of economies of the world through unrestrained trade and financial flows, as also through mutual exchange of technology and knowledge. Preferably, it also contains free inter-country movement of labour. In context to India, this implies opening up the economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activity in India, removing restrictions and obstacles to the entry of MNCs in India, allowing Indian companies to enter into foreign collaborations and also encouraging them to set up joint ventures abroad; carrying out massive import liberalization programs by switching over from quantitative restrictions to tariffs and import duties, therefore globalization has been identified with the policy reforms of 1991 in India.
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