The answer to this question is that the Indian government wanted Indian producers to compete in the world market to increase exports and generate foreign exchange earnings for the country.
To achieve this, the government introduced a series of economic reforms in 1991, which included liberalizing trade and investment policies, reducing import tariffs, and devaluing the Indian Rupee. These measures were aimed at making Indian exports more competitive and attractive to foreign buyers, and at encouraging foreign investors to bring in their capital to invest in India.
By reducing trade barriers and encouraging competition, the Indian government hoped to improve the competitiveness of Indian producers in the world market. This would not only generate foreign exchange earnings but also create employment opportunities and boost economic growth.
Overall, the government’s efforts to promote Indian producers in the world market were a key part of its strategy to boost exports, attract foreign investment, and lay the foundation for India’s rapid economic growth in the years that followed.
