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Preeti Dabral 4 years, 5 months ago
New Economic Policy refers to economic liberalisation or relaxation in the import tariffs, deregulation of markets or opening the markets for private and foreign players, and reduction of taxes to expand the economic wings of the country.
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Foreign exchange reforms were initiated in 1991 with the devaluation of the Indian rupee against foreign currencies. Consequently, a US dollar or an English pound could be exchanged for more rupees than before, implying that a US dollar or an English pound can buy more goods in the Indian market.
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Sia ? 4 years, 5 months ago
The two impacts of government policy changes on business and industry are:
- Increasing competition: As a result of changes in the rules of industrial licensing, entry of foreign firms creates competition for Indian firms, especially in service industries like telecommunication, airlines, banking, insurance, etc which were earlier placed in the public sector.
- More demanding customers: Government policies leading to economic liberalisation allow consumers to become well-informed, increase their purchasing power (through rising incomes) and change their lifestyle, which makes them more demanding about quality and value-driven products/services.
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Sia ? 4 years, 7 months ago
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