In 1991, after the introduction of New Economic Policy, export duties were removed from the goods. According to you what was the reason for the same?

To increase the competitive position of Indian goods in the international markets

The correct answer is Option 3: To increase the competitive position of Indian goods in the international markets

The export duties were removed in order to increase the competitive position of Indian goods in the international markets. The reason behind removing the tariff on exports was to increase the flow of foreign exchange in the economy which would eventually result in improving the balance of payment position of the country.

Why other Options are Incorrect: 

• Option 1: While India did eventually join the World Trade Organization (WTO), it did so in 1995. The reforms of 1991 were primarily driven by the IMF/World Bank conditions and India's own internal need to solve the economic crisis, rather than existing WTO agreements.

• Option 2: While "balancing" trade is a general goal, the specific mechanical reason for removing duties is to incentivize the outflow of goods (exports). Simply removing duties doesn't "balance" imports; that was handled by separate measures like devaluation of the Rupee.