Question

Explain the following statement with reason.

India embraced liberalization.

Answer 1

India embraced liberalization.

Because

1. India's economic situation was under stress and faced a serious balance of payments challenges. The government felt that reforms, especially those related to investment, trade, and private-sector development were absolutely necessary.
2. That's why, After becoming a member of WTO, India put a thrust on economic progress.
3. In this aspect, the contribution of the then Prime Minister of India, Narsimha Rao, and Finance Minister Manmohan Singh is very important. Prime Ministers Atal Bihari Vajpayee and Manmohan Singh took ahead the policy of liberlisation.
4. The report published by WTO in 2006 has made a special mention of increasing economic growth rate of India. Growth in investments, fall in the ratio of population below poverty line, fall in infant mortality rate, increasing availability of facilities for literacy, potable water and drainage system in India, are also mentioned in this report.
5. By adopting ways like simplifying import rules, modifying laws regarding rights on intellectual property, modifying patent laws, India entered the global economy.