It is an area in which business and trade laws are different from rest of the country mainly aiming at increasing trade, investment and job creation.

A Kisan Credit Card (KCC) is a credit delivery mechanism that is aimed at enabling farmers to have quick and timely access to affordable credit.

The primary objectives of the industrial sector were to promote major industries from the clutches of bureaucrats, to abolish restrictions on foreign direct investment, to liberate the indigenous enterprises from the restrictions of MRTP Act, to maintain a sustained growth in productivity and employment and also to achieve international competitiveness.

(i) Though India is the largest producer of fruits and second largest producer of vegetables in the world, the per capita availability of fruits and vegetables is low because of post-harvest losses.
(ii) Quality of produce deteriorates. There is price fluctuations.
(iii) In order to overcome these problems, the government of India and Ministry of Agriculture formed the 'Cold Storage Order, 1964' under Section 3 of the Essential Commodities Act 1955.
(iv) But still the cold storage facility is poor.

(i) Foreign investment and foreign technology enhanced the industrial competition and improved business environment in India.
(ii) Foreign investment including FDI and FPI were allowed. In 1991 automatic permission was granted for foreign direct investment in a specified list of high technology and high investment priority industries up to 51 % foreign equity.
(iii) The limit was raised to 74 % and later 100 %.
(iv) Foreign Investment Promotion Board negotiates with international firms and approves FDI.

(i) Import controls through licensing was abolished.
(ii) Customs and tariff and non-tariff policies were modified.
(iii) Liberalisation of foreign investment.
(iv) Imports were discouraged and exports encouraged.

Major changes after 1991 in the Indian economy :
(i) Foreign exchange reserves started rising.
(ii) There was a rapid industrialization.
(iii) The pattern of consumption started improving.
(iv) Infrastructure facilities such as express highways, metro rails, fly-overs and airports started expanding.

At the time of Independence our country suffered from the twin problems of
(i) transport poverty and
(ii) wide spread unemployment, both resulting in low standard of living.

The measures towards globalization
(i) Import liberalization through reduction of tariff and non-tariff barriers.
(ii) Opening the doors to Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are some of the measures towards globalization.

Characteristics of SEZ:
i) Geographically demarked area with physical security.
ii) Administrated by single body/ authority.
iii) Having separate custom area.
iv) Greater freedom to the firms located in SEZs.

Globalization refers to the integration of the domestic (india) economy with the rest of the world.

(i) The 1991 policy allowed Export houses and trading houses to import a wide range of items.
(ii) The government also permitted the setting up of trading houses with 51% foreign equity for the purpose of promoting exports.

Late Prime Minister of India Shri Narasimha Rao had announced the new Industrial Policy on July 24, 1991

Agrarian Crisis after Reforms:
(a) High input Costs: The biggest input for farmers is seeds. Before liberalisation, farmers across the country had access to seeds from state government institutions. The institutions produced own seeds and were responsible for their quality and price. With liberalization, India's seed. market was opened up to global agribusinesses. Also, following the deregulation many state government institutions were closed down in 2003. These hit farmers doubly hard seed prices shot up, and fake seeds made an appearance in a big way.
(b) Cutback in agricultural subsidies: Farmers were encouraged to shift from growing a mixture of traditional crops to export oriented 'cash crops' like chill, cotton and tobacco. Liberalisation policies reduced the subsides on pesticide, fertilizer and elasticity. As a result prices have increased by 300%. However, the prices of agricultural goods have not increased to that extent.
(c) Reduction of import duties: With a view to open India's markets, the liberalization reforms also withdrew tariffs and duties on imports. By 2001, India completely removed restrictions on imports of almost 1,500 items including food. As a result, cheap imports flooded the market, pushing prices of crops like cotton and pepper down.
(d) Paucity of credit facilities: After 1991 the lending pattern of commercial banks, including nationalised bank drastically changed. As a result, loan was not easily adequate. This has forced the farmers to rely on money lenders who charge exorbitant rate of interest.

(i) Liberalization was necessitated because various licensing policies were said to be deterring the growth of the economy.
(ii) Privatization was necessitated because of the belief that the private sector was not given enough opportunities to earn more money.
(iii) Globalization was necessitated because today a developed country can grow without the help of the under developed countries. Natural and human resources of the developing countries are exploited by the developed countries and the developing economies are used as market for the finished goods of the developed countries. The surplus capital of the developed countries are invested in backward economies.

(i) Monetary reforms aimed at doing away with interest rate distortions and rationalizing the structure of lending rates.
(ii) The new policy tried in many ways to make the banking system more efficient.
(a) Reserve Requirements:
(i) In mid-1991, SLR and CRR were very high.
(ii) It was proposed to cut down the SLR from 38.5% to 25% within a time span of three years.
(b) Interest rate Liberalisation :
(i) Earlier, RBI controlled the rates payable on deposits of different maturities.
(ii) The rates which could be charged for bank loans which varied according to the sector, use and size of the loan.
(iii) Earlier, it was longer term deposits after the liberalisation it was progressively extended to deposits of shorter maturity.
(c) Greater Competition:
(i) Among public sector, private sector, and foreign banks and elimination of administrative constraints.
(ii) Banks were given freedom to relocate branches.
(iii) Bank branch licensing policy in order to rationalize the existing branch network.
(iv) Guidelines for opening new private sector bank.
(v) New accounting norms regarding classification of assets and provisions of bad debts were introduced for Narasimhan Committee Report.