- Removal of Import Licensing:
- Raw materials, other inputs, and capital goods could be freely imported.
- This integrated Indian production with global supply chains.
- Reduced restrictions on international trade.
- Tariff Reductions (Lowering Customs Duties):
- Made imported goods cheaper.
- Increased competition for domestic industries from foreign goods.
- Encouraged Indian industries to become more globally competitive.
- These measures facilitated the flow of goods, services, capital, and labor across international borders, promoting globalization.