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Increase in Foreign investment: Under economic reforms , limit of foreign capital investment has been raised. In many industries foreign direct investment to the extent of 100 percent will be allowed without any restriction. Export trading houses will also be allowed foreign capital investment up to 100 percent. In this regard Foreign Exchange Management Act (FEMA) will be enforced. In matters of spare parts, raw materials and technical know how these foreign capital investment units will be subject to normal rules.

Partial convertibility of Indian rupee: To achieve the objects of globalization, partial convertibility rupee was allowed. It was in conformity with economic reforms. Partial convertibility means to buy or sell foreign currency like dollar or pound sterling for foreign transactions at a price determined by the market.

Foreign trade policy: In conformity with economic reforms, foreign trade policy was enforced for long duration. This policy is a liberal policy under this policy, all restrictions and controls on foreign trade have been removed.

Reduction in tariffs: In order to render Indian economy beneficial internationally, customs duties and tariffs imposed on import and exports are being reduced gradually.