It is observed that the tariff rates have been reduced manifold (7 times) during the reform period. The new industrial policy has made easy access of foreign investors to almost all the priority industries. The foreign equity has been increased ranging between 50 to 100 percent depending on the nature of industries. The recovery of the GDP growth rate to 6.0 percent in 1998-99 may be attributed to 7.6 percent growth recorded by primary sector. The industrial and other secondary sectors have experienced the declining growth rate after 1995-96. The actual FDI inflows have declined daring the reform period. Bulk of these has been directed to non-manufacturing sector. The decline in fiscal deficit was mainly due to decline in capital investment ratherthan curtailing the govemmant consumption expenditure and increase in rev nue receipts. The investment on social services sector also has declined during the reform period. The imports have surpassed the export earnings even during the reform period. Thus, there is an urgent need to restructure reforms of increase in public invest. ment on infrastructure development. The export needsfo bo diversified to harness the comparative advantage. The MNC's must be diiect 10 invest in the development of basic infrastructure rather than onconsumerism alone. The public and private invts mcnt must be encouraged in social services to improve the heman development index. The FDI policy should be on maximization of its contribution to India's development iaiher thanonmaximization of the magnitude of inflows by itself. Research and developm nt should be given priority to cope with the need of latest technology.
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