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Barriers to foreign trade and foreign investment were removed to a large extent in India in the year ____.

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Detailed Solution

Barriers to foreign trade and investment were drawn to a large extent in India in 1991. The government concluded that Indian producers needed to start competing with those from other countries. The feeling was that domestic producers would perform better due to international competition because they would have to raise their standards to compete with the fierce rivalry from around the world. Therefore, the government substantially reduced the obstacles to foreign commerce and investment while keeping the above necessity in mind. This includes the ease with which commodities can be imported and exported, as well as the ability of foreign businesses to establish factories and offices in India.

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Barriers to foreign trade and foreign investment were removed to a large extent in India in the year ____.