International Business After 1991 Case Study
International Business Assignment
Q – Briefly explain the changes happened in Indian economy after 1991.
The problems started in 1980’s, India had started having problems in balance of payments and till 1991 India was in serious economic crisis. The main reasons were currency devaluation and large and growing fiscal imbalances. Government of India took immediate action against it, it took loan from international monetary funds (IMF) against India’s gold reserves.67 tons of gold was transferred to London.
At that time dr.Manmohan Singh was the finance minister, he presented the finances of the country that were nearly bankrupt. With respect to the situation of India dr. Manmohan Singh introduced LPG (liberalization, Privatization and globalization),Also …show more content…
Import license was abolished. Until 1991, you need a licence to import anything and this license was very hard to get. Government removed the production license in many industries. Until 1991, you needed governments permission in what to produce and how much to produce.
A key element in the stabilization effort was to restore fiscal discipline, the budget aimed at containing government expenditure and augmenting revenues, reversing the downtrend in the share of direct taxes to total tax revenues. Some of the important policy initiatives introduced in the budget for correcting the fiscal imbalance were- reduction in fertilizer subsidy, abolition on subsidy of sugar etc.
The government encouraged private sector to take control. The burden was shifted on the private sector. It helped in reviving the sick units which had become a liability on the government. Government started selling some of its business to the private sector, this brought cash and new round of efficiency. Areas reserved for the public sector were narrowed down and greater participation by private sector was permitted in core and basic …show more content…
The situation of India was under control by 1994-1995. During 1991 china was ahead India in fastest growing economy but India is now ahead of china. The economic reforms improved the quality of life of the people. Businesses were doing well as result of simplified taxation policies. The license raj was abolished, also government removed barriers on exports and imports which led to increase in profit. Exports were increased which brought foreign currency. Foreign direct investment brought international goods in domestic market which increased the variety of goods also improve the quality of life by providing standardised products. Collaborations and joint ventures help Indian companies to compete globally and share the latest technology in the market. The service sector of have emerged over the years. This sector provides huge employment
Q – Briefly explain the changes happened in Indian economy after 1991.
The problems started in 1980’s, India had started having problems in balance of payments and till 1991 India was in serious economic crisis. The main reasons were currency devaluation and large and growing fiscal imbalances. Government of India took immediate action against it, it took loan from international monetary funds (IMF) against India’s gold reserves.67 tons of gold was transferred to London.
At that time dr.Manmohan Singh was the finance minister, he presented the finances of the country that were nearly bankrupt. With respect to the situation of India dr. Manmohan Singh introduced LPG (liberalization, Privatization and globalization),Also …show more content…
Import license was abolished. Until 1991, you need a licence to import anything and this license was very hard to get. Government removed the production license in many industries. Until 1991, you needed governments permission in what to produce and how much to produce.
A key element in the stabilization effort was to restore fiscal discipline, the budget aimed at containing government expenditure and augmenting revenues, reversing the downtrend in the share of direct taxes to total tax revenues. Some of the important policy initiatives introduced in the budget for correcting the fiscal imbalance were- reduction in fertilizer subsidy, abolition on subsidy of sugar etc.
The government encouraged private sector to take control. The burden was shifted on the private sector. It helped in reviving the sick units which had become a liability on the government. Government started selling some of its business to the private sector, this brought cash and new round of efficiency. Areas reserved for the public sector were narrowed down and greater participation by private sector was permitted in core and basic …show more content…
The situation of India was under control by 1994-1995. During 1991 china was ahead India in fastest growing economy but India is now ahead of china. The economic reforms improved the quality of life of the people. Businesses were doing well as result of simplified taxation policies. The license raj was abolished, also government removed barriers on exports and imports which led to increase in profit. Exports were increased which brought foreign currency. Foreign direct investment brought international goods in domestic market which increased the variety of goods also improve the quality of life by providing standardised products. Collaborations and joint ventures help Indian companies to compete globally and share the latest technology in the market. The service sector of have emerged over the years. This sector provides huge employment