Abstract:
A decade ago, India faced serious foreign exchange crisis, precipitated by an abnormal hike in the petroleum prices, which was further accentuated by a flight of NRI deposits. The country had to undertake a series of economic reforms in the form of internal and external liberalisation and also affect structural reforms like privatisation of public sector enterprises. The country also became a founder member of World Trade Organisation (WTO) when it was established in 1994, which binds it to effect the agreements and pushes for external liberlisation at an increasing scale, both in the depth and as well as in the average. These steps were expected to not only improve domestic but even global competitiveness of Indian industry and tied over the perennial foreign exchange problems. The country is on the verge of engaging in the next round of negotiations at WTO, which are aimed at opening sectors not open so far and further reduce the tariff walls, quantitative restriction and sub...
