After several years of being a largely closed economy, India initiated the
process of opening up its economy in 1991 when it introduced far-reaching
economic reforms of deregulation and liberalisation.
These reforms have unlocked India's enormous growth potential and unleashed
powerful entrepreneurial forces. Since 1991, successive governments, across
political parties, have successfully carried forward the country's economic
reform agenda.
Investment friendly policies:
relaxed FDI norms
low tax rates
reduced import duties
During this reform period, India has witnessed increased
participation in world trade, consistent, high economic growth and an
increasingly favourable environment for domestic and foreign investors.
India is a founder member of the GATT (General
Agreement on Tariffs and Trade) and is a signatory to the
WTO (World Trade Organization). India continues to play a significant
role in the current WTO negotiations.
Going forward, infrastructure development is a major focus area and the
government is actively encouraging private investment to bridge the gap.
Projects that are already underway include the "Golden
Quadrilateral" highway plan (covering 5,850 km and costing US$ 5.5 billion)
to link the four major metropolitan cities (Delhi, Mumbai, Chennai, Kolkata),
the "Sagar Mala" project for the expansion and
modernisation of ports, inland navigation and maritime transport and the
privatisation of airports of Mumbai and Delhi.
The Government has recently passed a Special Economic
Zones (SEZs) Bill. SEZs are treated as deemed foreign territory with no
import or export tariffs and extended periods for waiver of income taxes.
Fourteen SEZs have been set up and many more are in the pipeline.
Legislation on Intellectual Property Rights (IPRs)
has been adopted by the country's Parliament. All IPR laws are TRIPS (Trade
Related Aspects of Intellectual Property Rights) compliant with a fully
functional Intellectual Property Appellate Tribunal.
During this reform period, India has witnessed increased
participation in world trade, consistent, high economic growth and an
increasingly favourable environment for domestic and foreign investors.