What is the impact of government policies on the Indian economy
Discuss the major policies implemented by Indian government that have an impact on the economy of India.
- Fiscal Policy: The government uses fiscal policy to manage the economy, including taxation, government spending, and subsidies. The reduction of corporate tax rates and an increase in government spending on infrastructure are examples of this policy.
- Monetary Policy: This policy regulates the supply of money in circulation and interest rates. The Reserve Bank of India uses monetary policy to influence inflation, exchange rates, and economic growth.
- Foreign Policy: The government's foreign policy influences international trade, capital flows, and foreign investment. This includes trade agreements, tariffs, and foreign investment regulations.
- Industrial Policy: This policy governs industrial development, including subsidies, tax incentives, and regulations. The 'Make in India' initiative aims to boost the manufacturing sector and attract foreign investment to the country.
- Agricultural Policy: The government promotes the development of agriculture through various measures, such as subsidies, loan waivers, and minimum support prices for crops.
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