Section I Verbal Ability and Reading Comprehension Directions (Q. Nos. 1-24) Read the following passage carefully and then choose the most suitable option from the given ones. Passage 1
The origin of India’s foreign trade can be traced back to the age of the Indus Valley civilization. But, the growth of foreign trade gained momentum during the British rule. During that period, India was a supplier of food stuffs and raw materials to England and an importer of manufactured goods. However, organized attempts to promote foreign trade were made only after Independence, particularly with the onset of economic planning. Indian economic planning completed five decades. During this period; the value, composition and direction of India’s foreign trade have undergone significant changes. In early 1990s, the Indian economy had witnessed dramatic policy changes. The idea behind the new economic model known as Liberalization, Privatization, and Globalization in India (LPG), was to make the Indian economy one of the fastest growing economies in the world. An array of reforms was initiated with regard to industrial, trade and social sector to make the economy more competitive. Earlier India was afraid of global companies and the government ensured high tariff barriers. But, now the scenario is changing and the competition is looked at from the holistic angle.
Post 1991, India faced the worst economic crunch in terms of its FOREX reserves. Foreign exchange crunch made India close to defaulting on loans. The response was a slew of domestic and external sector policy measures partly prompted by the immediate needs and partly by the demands of the multilateral organisations, it was none other than the Finance Minister Dr. Manmohan Singh who gifted India with liberalization. The License Raj and the large number of trade barriers were intended to be done away with. Opening up the economy (to MNCs and foreign investors) including the core and financial sectors to private and foreign companies transformed India into a land of opportunities. The Industrial Policy o f 1991 drastically affected the growth of Indian businesses by making trade boundaries more permeable.India is fast emerging as a global leader, what with its vast, natural resources, and huge base of skilled manpower.
Combined with cutting edge technology, Indian trade market is making its presence felt all across the world. Indian products and services are seen as of international standards and globally competitive. Trade in India has made good progress on liberalizing trade regim es and cutting tariffs since the recent times, when most of the countries started with reforms.