(vi) At the time of crisis, our external debt was rising at the rate of $8 billion a year. After thatits growth has been arrested. From 1996-2006, it grew only by about $3 billion per year.Since 2006, however its growth has picked up again.(vii) Contrary to what many feared, the exchange rate for the rupee has remained almoststeady despite the introduction of full convertibility of rupee.(viii) International confidence in India has been restored. This is indicated by swelling foreigndirect and portfolio investment. FDIs were just 155 million dollars in 1991. They increasedto around U.S. $ 8.9 billion dollars in 2005-06 and further to U.S. $ 23 dollars in 2006-07and further to U.S. $ 34.4 billion in 2007-08.(ix) Certain benefits of globalisation have accrued to the Indian consumer in the form oflarger variety of consumer goods, improved quality of goods and in some cases andreduced prices of consumer durable.(x) Markets have started responding to the movements abroad. A fluctuation in U.S. marketor U.K. market has started affecting Indian market. Unlike before, the SENSEX and otherstock market indices now move in line with fluctuations in similar indices in other partsof the globe.368 COMMON PROFICIENCY TESTECONOMIC REFORMS IN INDIA(xi) The rating agencies, which rate investment risks in countries for global investors, haveupgraded India’s rating.(xii) Programmes of quality management and research and development are systematically
conducted by corporate sector.(xiii) More and more companies are opening branch offices/subsidiaries in other countriesand making their presence felt. Asian Paints, Tatas, Sundaram Fasteners, Ranbaxy, Dr.Reddy’s Laboratories, Infosys etc. are examples of Indian companies operating abroad.The critics, however, point out the country’s business houses were no doubt offeredopportunities to enter foreign markets. But the superior economic and financial clout ofthe multinational corporations was so great, that these opportunities could hardly beavailed of in the face of their competition. The competition was not among equal butbetween the financially strong corporations and the economically weak Indian corporates.Thus, while the multi-national corporations of Europe and the U.S. entered India in a bigway with foreign exchange resources used for investments in financial markets, a fewlarge Indian corporates could enter a few foreign countries and raise capital abroad atrelatively low cost.It is also pointed out that globalisation policy is not a free lunch. Globalised economies oroutwardly oriented economies tend to perform well during a period of dynamism and highgrowth in the world economy whereas they are prone to severe dislocation and collapse duringa downturn in international economic activity. On the contrary, internal oriented economiesare likely to be less damaged by the slow down in world trade.
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