FDI is a part of which reform pillar?
Show answer & explanation
Correct answer: C
Explanation
FDI (Foreign Direct Investment) is primarily part of the reform pillar of globalization, although it is also closely linked to liberalization.
Globalization: This integrated the Indian economy with the world economy, facilitating the flow of foreign investment (FDI).
Liberalization: The removal or reduction of restrictions on foreign investment under the FDI policy is part of liberalization.
Economic Reforms of 1991: Under the New Economic Policy (LPG - Liberalisation, Privatisation, Globalisation), India opened its markets to foreign companies, leading to a surge in FDI.