Forex Earnings & Role of Entrepreneur in Forex Earnings
What is Forex Earnings ?
Forex earning is a since qua-non for a developing economy. It is needed to pay for import’s of essential and rare commodities. For example, India has to import a major part of petroleum products to meet its domestic demand. In order to augment forex reserves Government revolutionalised the economic policy through L.P.G. :
- Liberalisation,
- Privatisation and
- Globalisation
It has resulted in industrial development of the nation, increase in exports and greater reduction or through substitution in imports. Gone are the days when India had to import automobiles. Now India is exporting one car out of every 5 manufactured car to foreign countries.
India has encouraged F.D.I. (Foreign Direct Investment) in various sectors. Recently it has increased the percentage of F.D.I. participation in certain sectors from a meager 49% to substantial figure of 74%.
New economic policy has resulted in augmenting forex reserves.
Role of Entrepreneur in Forex Earnings
Entrepreneurs have been playing significant role in earning forex. Following are the important factors:
Since 1991 there has been unprecedented progress in this respect.
- Increase in exportable items.
- Increase in F.D.I.
- Increase in B.P.O.
- Increase in the production and through import substitutes.
- Promoting medical tourism
- Raising export incentives for foreign exchange earnings.
- Increase in productivity and production.
- Tourism promotion.
- Adopting new marketing strategies for export markets.
Important links
- Entrepreneurship- Meaning, Definition, Functions & Characteristics
- Emergence of Entrepreneurial Class in India
- Role of an Entrepreneur in Economic Development
- Entrepreneur Role:for Balanced Reg. Dev. of industries & Export promotion
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