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What are the major economic reforms in India that I should be aware of?
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What are the major economic reforms in India that I should be aware of...
The major economic reforms in India that you should be aware of are:

1. Liberalization:


  • Initiated in 1991, liberalization aimed to open up the Indian economy and reduce government intervention.

  • Key measures included reducing industrial licensing, promoting foreign investment, and encouraging competition.

  • This reform led to the dismantling of the License Raj, allowing businesses to operate more freely.



2. Privatization:


  • Privatization involved transferring ownership and management control of state-owned enterprises to the private sector.

  • The objective was to improve efficiency, reduce bureaucratic inefficiencies, and attract private investment.

  • Strategic sectors such as telecommunications, power, and aviation witnessed significant privatization.



3. Globalization:


  • Globalization aimed to integrate the Indian economy with the global market.

  • It led to the removal of trade barriers, promoting exports and imports.

  • Foreign Direct Investment (FDI) was encouraged through various measures such as easing entry norms and providing tax incentives.



4. Goods and Services Tax (GST):


  • GST, implemented in 2017, aimed to simplify the complex indirect tax structure in India.

  • It replaced multiple indirect taxes with a single unified tax, reducing tax cascading and improving ease of doing business.

  • GST has facilitated inter-state trade and enhanced tax compliance.



5. Financial Sector Reforms:


  • Financial sector reforms focused on liberalizing and strengthening the banking and financial systems.

  • Measures included the introduction of new private banks, strengthening regulatory frameworks, and promoting financial inclusion.

  • These reforms aimed to enhance transparency, efficiency, and stability in the financial sector.



6. Infrastructure Development:


  • The government has prioritized infrastructure development to boost economic growth.

  • Initiatives such as the Bharatmala Project, Sagarmala Project, and Smart Cities Mission aim to improve transportation, connectivity, and urban development.

  • These reforms help attract investments, create jobs, and enhance overall economic productivity.



These major economic reforms have played a significant role in shaping the Indian economy and attracting investment. They have contributed to increased competitiveness, improved ease of doing business, and accelerated economic growth. It is essential to stay updated with these reforms as they have a direct impact on various sectors and business opportunities in India.
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Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greeces sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.

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What are the major economic reforms in India that I should be aware of?
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