How did the process of liberalisation initiated in India in the 1990s, promote globalisation? Explain.

(i) The process of Liberalization i.e. removing barriers or restrictions set by the government was started in the 1990s.

(ii) The government decided that the time had come for Indian producers to compete with producers around the globe.

(iii) It has facilitated the MNCs to set up their factories in India. Thus, Indian economy was integrated to the world economy and process of globalization started in India.

(iv) Several steps were taken to attract foreign investment. Many SEZs were established in the country.

(v) Several steps were taken so that goods could be imported and exported easily and also foreign companies could set up factories and offices here. It has increased India’s foreign trade.