Globalisation Effect on India's Economic Growth
Following the economic reforms initiated in 1991, India embraced globalisation, integrating its economy with the global market. This policy shift involved reducing trade barriers and encouraging foreign investment.
Impact Analysis
- Increased Trade: Globalisation facilitated a significant rise in both exports and imports, opening up new markets for Indian goods and services.
- Foreign Investment: Liberalisation attracted substantial foreign direct investment (FDI) and portfolio investment, bringing in capital, technology, and management expertise.
- Competition and Efficiency: Increased competition from foreign firms spurred domestic companies to improve efficiency and product quality.
- Economic Expansion: These factors collectively contributed to higher productivity, job creation, and a sustained increase in the Gross Domestic Product (GDP).
Therefore, globalisation led to a noticeable acceleration in India's economic growth trajectory.
The correct answer is: Made it grow faster.
Similar Questions
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Important Questions from Economic and Financial Affairs
As per the Union Budget 2021-22, the government plans to continue on the path of fiscal consolidation, achieving a fiscal deficit level below 4.5% of GDP by ______.
- The National Rail Plan announced in the Union Budget of 2021-22 aims to create a future ready railway system by which of the following years?
As per the Economic Survey 2021, in which of the following states did the proportion of households that had health insurance decrease by 12% from 2015-16 to 2019-20?
As per Economic Survey 2020-2021, India’s real GDP is estimated to grow by ______ in financial year 2021-22.
As per the Economic Survey of India 2020-21, India is expected to have a Current Account Surplus of ______ GDP in FY21.
