Global Business Environment

WORKSHEET 3

CHETHAN M

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The passage highlights a number of crucial elements of India's New Economic

Policy of 1991. In order to draw foreign capital and skills into the Indian economy,
the strategy highlights the easing of foreign direct investment (FDI) restrictions in
a number of areas. The policy's emphasis on deregulation and the reduction of
administrative barriers to build a more business-friendly environment is directly
echoed by the streamlining of license application processes, as noted, by
establishing online application procedures and extending license validity.

The idea of "Zero Defect Zero Effect (ZED)" further supports the New Economic
Policy's emphasis on encouraging production process efficiency and raising
product quality. This idea seeks to establish India as a hub for global
manufacturing and is related to the policy's overarching goal of boosting the
competitiveness of Indian firms abroad. The all-encompassing objective of the
strategy, which is liberalization and expanded private sector participation to spur
economic growth and global engagement, is echoed by the mention of the "Make
in India" campaign, which aims to strengthen indigenous manufacturing skills.

Last but not least, the policy's goal of improving the quality and marketability of
domestically produced goods and services is underscored by the need to prevent
rejection of Indian products on the global market. In essence, the sentence subtly
emphasizes the core ideas of the New Economic Policy of 1991, namely
liberalization, deregulation, quality improvement, and enhanced global economic
connectivity.