Economic Policies in India

This article is based on the economic policies in India. Economic policies of the government of India suggest the system for taxation, and also the budget of this county, not only that but also it includes the currency and the rate of interest. The market of labour and also the national ownership are an integral part of economic policies of India. India has various economic policies which are industrial policy, trade policy, monetary policy, fiscal policy, Indian agricultural policy, National agricultural policy, industrial policies, International trade policy in India, exchange rate management policy, EXIM policy. 

The plan of the economic policies in India was first conducted in 1947. But after the advent of the economic crisis in 1991, the government of India reforms the policies of economics in India. 

Industrial Policy

The stress of these policies is on the public sector of India in 1948. This policy is handled by the development and regulation act 1951. 1973’s FERA handles the foreign investment in India. After the 1991’s economic crisis these governments took strong steps in order to make the industries in India and also introduced the industry more competitive. 

Trade Policy

The foreign trade policy of India focuses on enhancing the share of India in universal trade from 2.1% to 3.5%. Most importantly, the trade of this country India became $900 billion in the financial year of 2020. 

Monetary Policy

This policy in India majorly deals with the monetary authority of this country and it includes the central bank. It handles the allocation and also the supply of money, rate of interest in order to present the high growth of the economy in India. 

Fiscal Policy

This policy controls taxation and the decision of expenditure from the perspective of the government of India. This government takes strong steps to strengthen the control of the expenditure of this country. Through the initiative of this government, the contribution of the resources and the principles of the market have been improved. 

Indian Agricultural Policy

This policy mainly includes the reformation of the land in India. The strategies regarding agriculture and the use of innovative technology in agriculture are also the concern of this policy. Most importantly, the policy of prices of the goods, security and safety of the foods, and also the public distribution system, service regarding non-firms are also an integral part of this policy. 

National Agricultural Policy

Through this policy, the annual development rate regarding agriculture has been increased. Reformation of land includes reform of tenancy, advancement of land-lease markets, and the rights of women regarding land. This policy also aims to bring equal development regarding the agriculture of the country of India. 

Industrial Policies

Regarding these policies, the industrial policy resolution was taken in 1948 to add democratic socialism to the structure of the economy in India. The new policies regarding industries suggest the expansion of the responsibilities of the states under India, decrease of the threats of nationalization and all. 

International Trade Policy

This policy includes free trade in India. Free trade suggests the smooth trade of a country. In the mid 19th century, the government of India modified the trade international trade policies. The main aim of these policies is to make the economy of the country India strong. 

Exchange Rate Management Policy

This policy is also known as the pegged exchange rate. This policy includes the flexibilities in the exchange rate. There is the upper and lower limit of the exchange rate. If the up and down rate is 1%, then the rate of exchange is in a normal state. The main purpose of these policies regarding exchange rate is to assure stability regarding foreign trade and capital movement. 

EXIM Policy

EXIM policy suggests the export and import policies in India. Through these policies, the guidelines have been fixed regarding export and import. The government of this country India introduced these policies for five years in the control of the development and regulation act 1992 regarding foreign trade. 

Conclusion 

From the above discussion, it can be said that the economic policies are vital in the perspective of any country, especially in India in order to make the development of its economy. The condition of the economy depends on the trade of this country. In order to maintain international trade, it is important to introduce well-structured economic policies. India has followed this strongly in every perspective. Through the maintenance of these economic policies, this country tries to maintain its growth in the upcoming days.