The Foreign Exchange Management Act was enacted by the Indian Central Government to facilitate external payments and cross-border trade in India. The Federal Emergency Management Agency (FEMA) was established in 1999 to replace the Federal Emergency Response Act (FERA). FEMA was created to address all of FERA’s flaws and shortcomings, and as a result, it enacted a number of economic reforms (major reforms). FEMA was created primarily to de-regulate and liberalize India’s economy. FEMA was established in India with the primary goal of facilitating international trade and payments. FEMA was also created to aid the development and maintenance of the Indian currency market in an orderly manner.