Identifying Non-Impacts of Globalisation on Indian Economy

Globalisation refers to the integration of economies through trade, foreign investment, and technology transfer. India's economic reforms starting in 1991 significantly enhanced its integration with the global economy. The question asks to identify which option is NOT a consequence of this process.

Analysis of Options

• Option A: Foreign direct investment (FDI) has been liberalised
  Globalisation typically involves opening economies to foreign investment. Liberalising FDI policies was a key step India took, making it an impact of globalisation.
• Option B: Foreign institutional investments are made more restrictive for stability of the economy
  Globalisation generally aims to attract, not restrict, foreign capital, including Foreign Institutional Investments (FII). Making FII policies *more restrictive* goes against the trend of opening up the economy facilitated by globalisation. Therefore, this statement does NOT represent an impact of globalisation on the Indian economy.
• Option C: Two stage devaluation of the rupee by about twenty percent in July, 1991
  The devaluation of the rupee in 1991 was a crucial reform measure undertaken to boost exports and manage the balance of payments, aligning with the integration goals of globalisation. This was an impact.
• Option D: Introduction of a system of partial convertibility of the rupee
  Partial convertibility of the rupee, introduced in 1991-92, made it easier to trade internationally and move capital, reflecting the increased economic integration characteristic of globalisation. This was an impact.

Conclusion

Based on the analysis, making Foreign Institutional Investments more restrictive is contrary to the principles and typical outcomes of economic globalisation, which seeks to encourage capital inflows. Options A, C, and D describe measures consistent with India's integration into the global economy.