Social Science — CBSE Class 10 board question

Liberalisation of Foreign Trade and Foreign Investment — Far-Reaching Changes in India:

1. Removal of Trade Barriers (1991): Starting around 1991, the Indian government removed barriers on foreign trade and investment. Goods could now be imported and exported easily, and foreign companies could set up factories and offices in India.

1. Rise of MNC Investment: MNCs increased investments in sectors like automobiles, electronics, cell phones, and banking, creating new jobs and benefiting local supplier companies.

1. Growth of Indian Companies: Several top Indian companies invested in newer technology and raised production standards. Some emerged as MNCs themselves — Tata Motors, Infosys, Ranbaxy, Asian Paints.

1. Special Economic Zones (SEZs): Government set up SEZs with world-class infrastructure, offering tax exemptions for five years to attract foreign investment.

1. Consumer Benefits: Greater competition led to improved quality, wider choice, and lower prices for consumers.

1. New Service Opportunities: IT-enabled services like call centres, data entry, and accounting expanded, boosting exports.

Source: Chapter 4 — Globalisation and the Indian Economy, Liberalisation of foreign trade and foreign investment policy; Impact of Globalisation in India

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• Examiners expect 5 distinct, labelled points for a 5-mark question — one point per mark.
• Each point should be crisp (1–2 lines), not a paragraph.
• Key terms like liberalisation, SEZs, trade barriers, MNCs must appear — they fetch marks.
• Don't just describe globalisation generally; focus on changes due to liberalisation policy, as the question demands.
• Mentioning the year 1991 shows factual accuracy and impresses examiners.