Answer:-
The broad macro-economic changes in the spheres of economy and business in 1990s were brought as a result of Liberalization-Privatization-Globalization reforms that seek to scale down the barriers in trade and helped India integrate into the international economy. However, major push to such efforts was provided through the economic reforms in field of trade, tax and fiscal. Some of the major reforms included:
1)Singing of Free Trade Agreements and Comprehensive Economic Partnership Agreement in order to give boost to trade through focus on complementary.
2)Introduction of Value Added Tax and Service Tax in order to remove the cascading effect and provide better price to producer
3)Enacting Fiscal Responsibility and Budgetary Management Act to aim for a tight fiscal discipline
4)Establishing Competition Commission of India to replace Monopolies and Restrictive Trade Practices Act in order to ensure a level playing field for all
5)Opening up various sectors like telecom, infrastructure and real estate for Foreign Direct Investment
6)Enacting Finance Act, 2001 in order to promote investment through provisions of SEZs and introducing transparency in transfer pricing issues
Thus, early 2000s were particularly important to spur up economic growth through a variety of reforms. The recent deliberation over GST Bill further testifies the fact that such reforms would continue to take place in order to take Indian economy to new heights.
The broad macro-economic changes in the spheres of economy and business in 1990s were brought as a result of Liberalization-Privatization-Globalization reforms that seek to scale down the barriers in trade and helped India integrate into the international economy. However, major push to such efforts was provided through the economic reforms in field of trade, tax and fiscal. Some of the major reforms included:
1)Singing of Free Trade Agreements and Comprehensive Economic Partnership Agreement in order to give boost to trade through focus on complementary.
2)Introduction of Value Added Tax and Service Tax in order to remove the cascading effect and provide better price to producer
3)Enacting Fiscal Responsibility and Budgetary Management Act to aim for a tight fiscal discipline
4)Establishing Competition Commission of India to replace Monopolies and Restrictive Trade Practices Act in order to ensure a level playing field for all
5)Opening up various sectors like telecom, infrastructure and real estate for Foreign Direct Investment
6)Enacting Finance Act, 2001 in order to promote investment through provisions of SEZs and introducing transparency in transfer pricing issues
Thus, early 2000s were particularly important to spur up economic growth through a variety of reforms. The recent deliberation over GST Bill further testifies the fact that such reforms would continue to take place in order to take Indian economy to new heights.
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