Tax Reforms

Since 1991, there has been a continuous reduction in the taxes on individual incomes. The rate of corporation tax was reduced; simplification of procedures to pay the income tax was also initiated.

Foreign Exchange Reforms- Initially the rupee was devalued against foreign currencies. This led to the increase in the inflow of foreign exchange. Now usually, markets determine exchange rates based on the demand and supply of foreign exchange.

Trade and Investment Policy Reforms: To promote the efficiency of the local industries and for the adoption of modern technologies competitiveness of industrial production and foreign investment and technology into the economy was promoted. Import licensing was abolished except in case of hazardous and environmentally sensitive industries.