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Cont.
Current account deficit is not necessarily a bad thing for certain countries. Developing counties may run a current account deficit in the short term to increase local productivity and exports in the future.
Cont.
A negative balance of payments means that more money is flowing out of the country than coming in, and vice versa.
Low Investment
Concentration of Wealth
Sub-standard of product
Unemployment
Low Exports
Poverty
Illiteracy
License Required For Following Industries 1. Alcoholic drinks 2. Tobacco Products 3. Defense and Aerospace 4. Explosives for industries 5. Chemicals 6. Drugs & Pharmaceuticals
Aim
Introducing liberalisation Protect the Indian economy from unnecessary Bureaucratic control. Removing restriction on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP Act. Shedding the load of public enterprises.
Cont.
Reduced the list of industries reserved for the public sector to 4 from 17. Currently only two sectors are under public monopoly: Railways and Atomic energy. Disinvestments of government equity in PSUs.
Foreign Investment
The Reserve Bank of India was empowered to approve equity investment up to 51% in 34 industries through automatic approval route. 100% foreign equity is welcome in export oriented units, power sector, electronics and software technology parks, Accommodation sector. Foreign Promotion Council was formed.
Cont.
RBI allowed automatic approval to foreign technology agreements within prescribed monetary limit. Use of Foreign Brand names/ trademarks for sale of goods in India is permitted. Foreign equity is permitted even in small scale enterprises up to 24%.