HIST-251 Lecture Notes - Lecture 4: Foreign Direct Investment, Disinvestment, Devaluation
25 Mar 2016
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Document Summary
Some of the steps taken to liberalize and globalize our economy were: To solve the balance of payment problem indian currency were devaluated by 18 to 19%. To make the lpg model smooth many of the public sectors were sold to the private sector. Fdi was allowed in a wide range of sectors such as insurance (26%), defense industries (26%) etc. The facilities which were available to foreign investors were also given to nri"s. The economy of india is passing through a difficult situation. Output and demand conditions were highly affected by the poor performance in agriculture during the last two years. The economy globally recorded an output growth of 2. 4%. The performance in the first quarter of the financial year is around 5. 8% and in the second quarter is around 6. 1%. The export of india in year 2001-02 extended to 32,572 and import extended to. Agriculture exports rose to 18% of the total annual export of the country.
