After gaining independence in 1947, India paid attention to economic development. The first few years were spent in solving the problems of the partition of the country, but soon the policy of planned development was adopted and the first five-year plan started from April 1951. Domestic industries were developed in place of imports. These domestic industries were helped by subsidies and favorable taxes.
When the fixed exchange rate is kept higher than the exchange rate determined in the free market, the export price increases and the import price decreases. This discourages exports and encourages imports. This increases the demand for foreign exchange as imports are more than exports.
Due to the high demand for foreign exchange, there is a need to impose many restrictions on imports and control over exchange. In India, arrangements for import license and quota were made for this, which were issued by government officials. This is called license permit.
Why was there a need for foreign investment?
In July 1991 a balance of payments crisis broke out. The stock of Indian foreign investment was equivalent to only two weeks of imports. In such a dire economic situation, in July 1991, the then Honorable Finance Minister Dr. Manmohan Singh announced a package of economic reforms, the objectives of which were as follows:
- Economic Liberalism
- Globalization
- Privatization
There will be a need to attract foreign investment under new thinking, new strategy.
Countries interested in technical expansion of the subject mentioned under new thinking, new strategy will invest in India and present their contribution for research and development of this subject as a new source of economic development will be generated through this subject. The main advantage of this subject is to develop new sources of employment along with economic development.
Through government announcements, government policies are implemented for the benefit of the people of the nation and for the development of the nation. After doing all this, the government expects positive results from the announced policies.
Under the responsibility of the High Level Economic Evaluation Committee, it will be suggested to make a provision that it should review from time to time the foreign investment received through the subject mentioned for new thinking, new strategy and inform the state governments and the central government.
Apart from this, it will also be kept in the category of suggestion that for new thinking, new strategy, labor arising out of foreign investment received through the topic described should be known.
Some key points will be helpful in attracting foreign investment for new thinking, new strategy, which are described as follows-
- For research and development under agriculture sector.
- For options helpful in expanding income resources.
- For an option helpful in expanding the country’s energy resources.
All these key points will show their main role in strengthening the nation along with attracting foreign investment for new thinking, new strategy.
Statutory Note
This whole plan has been carefully prepared under a new thinking, a new strategy. Even after this, if any kind of error and defect is found in the research and development operation of the subject, then there will be no responsibility of any kind on the subject creator, blogger website and people related to this topic.Along with this, if any person does the experimental work to be done in research and development operation from his level, then after that if any kind of physical and mental damage occurs to that person, then there will be no responsibility of any kind. Subject creator, blogger website and people related to this topic will not have.
