Export promotion is being actively pursued and inward looking import substitution and protection of domestic industry have been abandoned as principles of public policy. Financial sector and capital market reforms have been stepped up in almost all the countries and are at various stages of implementation. New laws and regulatory mechanisms have been adopted to strengthen the banking sector and securities markets.
Directed credit and credit ceilings, administered and subsidized interest rates have gradually given way to market-based allocation of credit and determination of prices. India has become a leader in outsourcing of information technology enabled services. Low wages, large English speaking technical manpower, availability of venture capital and networking with the U.S. firms have brought about a major expansion in I.T. exports.