Monetary and Financial Sector Reforms:
Monetary reforms aimed at doing away with interest rate distortions and rationalizing the structure of lending rates.
The new policy tried in many ways to make the banking system more efficient. Some of the measures undertaken were:
(a) Reserve Requirements: Reduction in statutory liquidity ratio (SLR) and the cash reserve ratio (CRR) were recommended by the Narasimham Committee Report, 1991. It was proposed to cut down the SLR from 38.5 percent to 25 percent within a time span of three years. Similarly, it was proposed that the CRR be brought down to 3 to 5% over a period of four years.
(b) Interest Rate Liberalisation: Earlier, RBI controlled
(i) the interest rates payable on deposits,
(ii) the interest rates which could be charged for bank loans.
(c) Greater competition among public sector, private sector and foreign banks and elimination of administrative constraints.
(d) Liberalisation of bank branch licensing policy in order to rationalize the existing branch network.
(e) Banks were given freedom to relocate branches and open specialized branches
(f) Guidelines for opening new private sector banks.
(g) New accounting norms regarding classification of assets and provisions of bad debt were introduced in tune with the Narasimham Committee Report.

(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.

Introduction:
The government of India, Ministry of Commerce and Industry announced New Foreign Trade Policy on 1st April 2015 for a period 2015 - 2020.
Salient Features:
(i) Reduce export obligations by 25% and give boost to domestic manufacturing supporting the 'Make in India' concept.
(ii) As a step to Digital India concept, online procedure to upload digitally signed document by CA/CS/Cost Accountant are developed and further mobile app for filing tax, stamp duty has been developed.
(iii) Repeated submission of physical copies of documents available on Exporter Importer Profile is not required.
(iv) Export obligation period for export items related to defence, military store, aerospace and nuclear energy to be 24 months.
Conclusion: EXIM Policy 2015 - 2020 is expected to double the share of India in World Trade from present level of 3% by 2020. This is too ambitious.

Introduction:
(i) In order to promote export and industrial growth SEZ was introduced in many countries.
(ii) India was one of the first in Asia to set up EPZ (Kandla, 1965).
(iii) SEZ covers free trade zones, export processing zones, industrial parks, economic and technology development zones, high-tech zones, science and innovation parks, free ports, enterprise zones.
Major objectives of SEZs
(i) To enhance foreign investment, to attract foreign direct investment and increase GDP.
(ii) To increase shares in global export.
(iii) To generate additional economic activity.
(iv) To create employment opportunities.
(v) To develop infrastructure facilities.
(vi) To exchange technology in the global market.
Characteristics:
(i) Geographically demarcated area with physical security.
(ii) administered by single authority.
(iii) Streamlined procedures.
(iv) Having separate custom area.
(v) Governed by more liberal economic laws.
(vi) Greater freedom to firms located in SEZs.
(vii) They need not respect the government's rules and regulations.
(viii) The social and environmental impacts were disastrous.

Introduction:
(i) The Prime Minister of India announced the new Industrial Policy in 1991.
(ii) The policy has brought changes in the following aspects.
Industrial delicensing policy:
(i) Under the industrial licensing policies, private sector firms had to secure licenses to start an industry.
(ii) The new industrial policy brought an end to industrial licensing or the license raj or red tapism.
Dereservation of the industrial sector:
(i) Previously the public sector was given reservation in capital goods and key industries.
(ii) Under industrial deregulation most of the industrial sectors were opened to the private sector as well.
(iii) Only 3 sectors ie., atomic energy, mining and railways will continue as reserved for public sector.
Reforms related to the public sector enterprises:
(i) Reforms in the public sector aimed at enhancing efficiency and competitiveness of the sector.
(ii) The government identified strategic and priority areas for the public sector to concentrate.
(iii) Loss making PSUs were sold to the private sector.
Abolition of MRTP Act:
(i) The Monopoly and Restrictive Trade Practices Act, 1969 was abolished.
(ii) In 2010, the Competition Commission monitored the competitive practices in the economy.
(iii) A strong and competitive private sector and a number of foreign companies were started in India.
Foreign Investment Policy:
(i) Foreign Investment including FDI and FPI were allowed.
(ii) In 1991, the government announced a specified list of high-technology and high-investment priority industries wherein automatic permission was granted for foreign direct investment (FDI) up to 51% foreign equity.
(iii) Later it was raised to 74% then 100%.
(iv) Foreign Investment Promotion Board was set up to negotiate with international firms and approve foreign direct investment in select areas.