Q.Explain the meaning of Globalisation and describe the main steps taken by India to globalise its economy after 1991.

Globalisation connected India outward through trade, FDI/FPI, currency convertibility, and WTO membership.

Globalisation refers to the process of integrating a country's economy with the economies of the rest of the world, through freer flows of trade, investment, and technology. India's main steps toward globalisation after 1991 include:

1. Trade-policy liberalisation — progressive reduction of import tariffs and removal of most quantitative restrictions (QRs) on imports, replacing outright bans/quotas with more transparent tariffs.
2. Liberalisation of FDI — permitting foreign direct investment across a widening range of sectors, with an automatic approval route for many sectors and progressively raised sectoral FDI caps.
3. Permitting FPI/FII — allowing foreign institutional investors to invest in Indian stock and debt markets, widening Indian companies' access to capital.
4. Current-account convertibility of the rupee — making the rupee freely exchangeable for foreign currency for trade and other current transactions.
5. Access to global capital markets — permitting Indian companies to raise funds abroad through GDRs and ADRs. …