Question
Economic Liberalization bought which route for FDI ?
Solution
Solution: FDI there was a dual route of approval. The automatic route (governed by the RBI) and the government route (governed by the central government). the goal of liberalization was to make the economy more balanced and market-friendly. The efforts for liberalization and economic change were started in 1987 by trying to get rid of the License Raj prevailing in India at the time. Finally, the policies in 1991 began the process of economic liberalization. There was a lowering of tariffs and import taxes, promotion of private investment, an overall lowering of taxes, an increase in foreign investment and FDI, deregulation of markets, etc. Liberalization has been responsible for the economic growth of the country after 1991. There was the entry of many companies such as Pepsi, Volkswagen, Sony, Samsung, Toyota, Microsoft, HP, etc. post the liberalization reforms.
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