Essay on the important features of the economic reforms in India

3. Except for some particular industries relating to consumer items, condition of dividend based on the FDI pattern is abolished for any other industry.

4. Greater amount of liberalization in Foreign Exchange Regulation Act and Monopolies and Restrictive Trade Practices Act.

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5. Grant of 100% equity investment to NRIs along with full repatria­tion rights in most of the industrial sectors.

6. Permission to use foreign trade marks.

7. Exemption of tax up to five initial years for establishing new indus­tries in industrially backward states and districts in the country.

Trade:

1. Partial convertibility of Rupee in 1992 and Full convertibility of rupee on the current account in 1994.

2. Promise to bring stability in the Export-Import policy.

3. Liberalization in the control on export and import of product leaving only a few ones.

4. Rebate in all groups in import tariff. Maximum tariff rate was brought down to 65%. Import duty was relaxed on capital items.

5. Abolition of restrictions on important commodities.

6. Export Promotion Capital Items Scheme launched for industries and services for the promotion of export.

7. 100% FDI exemption in electronic sector and Electronic Hardware Technology Park Scheme with other attractive profits was launched.

8. The export loan status of banks was increased up to 10% of the total bank loans.

9. Green signal to the New GATE agreement.

10. A substantial increase up to about 20% through export in dollar during 1994-95. Trade deficit decreased a sufficient increase in Foreign Exchange.

Fiscal Reforms:

1. Loan regulations of banks liberalised.

2. For equity and credit, the banks are free to make liaison with capital markets. Banks are permitted to get up to 20% from foreign institutional investors and up to 40% from NRIs.

Reforms in Capital Market:

1. Indian companies permitted to enter into International capital mar­kets.

2. Permission granted to foreign institutional investors to invest in Indian capital market.

3. Permission for Private Mutual Funds.

Reforms in Taxation:

1. Company taxes relaxed.

2. Medium level relaxation in excise duty rates and duty pattern rationalised.

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