Foreign Exchange
- FE&I were regulated thru Foreign Exchange Regulation Act (FERA)
- later Foreign Exchange Management Act (FEMA) came
- FERA stricter than FEMA
- FEMA decriminalized FI crimes
- FEMA needed as india needed more FE
Liberalization
- Post 1991, focus on reducing fiscal deficit, current acc deficit and liberalizing economy
- for L, New Industrial Policy 1991 liberalized licence raj era
- move towards mkt economy
- currency values also determined by market now
- tax reforms, FDI, FII allowed
- progressive liberalization of exchange rate policy
Globalization
- free mvmt G&S, labour and capital with min restrictions
- linked with rise in service sector
- lesser joint families
- MNC had to keep price sensitive nature of indian public