Which of the following best defines globalisation in the context of post-1991 economic reforms in India?

Correct option is A

The correct answer is: (a) Integration of Indian economy with the global economy
Explanation:
· Globalisation, in the context of the 1991 reforms, refers to the integration of the economy of the country with the world economy.
· It creates a complex web of economic interdependence where barriers to trade and investment are minimized.
· The goal is to transform the world towards greater interdependence and integration, creating a "borderless world" for economic activities.
· It involves the free flow of goods, services, capital, and technology across national borders.
Information Booster:
· Outsourcing: An important outcome of globalisation for India was outsourcing, where global companies hired Indian services (like voice-based business processes, accounting, and record-keeping) due to low costs and skilled manpower.
· World Trade Organization (WTO): Globalisation is closely linked to international organizations like the WTO, which establishes rules to ensure free and fair trade among nations.
· LPG Model: It is the third pillar of the LPG (Liberalisation, Privatisation, Globalisation) model introduced in the New Economic Policy of 1991.
Additional Knowledge (Incorrect Options):
Restriction on foreign investment (Option b)
· This is a feature of a closed economy or protectionism. Globalisation, conversely, encourages Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) by removing restrictions.
Promotion of domestic trade only (Option c)
· Focusing solely on domestic trade is known as Import Substitution or an inward-looking trade strategy, which India followed before 1991 to protect domestic industries.
Closing down of multinational companies (Option d)
· Globalisation actually facilitates the entry and growth of Multinational Corporations (MNCs) in the domestic market, rather than closing them down.