Summary |
Business environment in India has improved considerably after the initiation of economic reforms in early 1990s. Domestic and foreign investors are finding it easier to do business after the reforms which are aimed at reorientation of the centrally controlled economy to a market-oriented one in order to foster greater efficiency and growth. This is being done by introducing greater competition in the economy through progressive internal deregulation accompanied by external competition promoted by foreign direct investment and trade liberalization. No area of the Indian economy has been as much influenced by the impulses of reforms as the industrial sector.
The financial turmoil which surfaced in August 2007 in the US financial system has also adversely hit the Indian economy. Ever since the initiation of economic reforms, India is more integrated with the world economy than ever before. Compared to other emerging economies, India has several strengths that can help mitigate the adverse effects of the global economic crisis, provided appropriate policy action is initiated.
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