What is the full form of ‘LPG’ in context of Economic Reforms in India in the year 1991?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Liberalisation, Privatisation & Globalisation
The New Economic Policy of 1991 is known by these three words:
Liberalisation: removing government restrictions on economic activity.
Privatisation: giving the private sector a larger role, by selling government-owned enterprises or their shares.
Globalisation: joining the Indian economy more closely with the world economy.
NCERT (2026-27): “…India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP). The NEP consisted of wide ranging economic reforms. … On the other hand, structural reform policies are long-term measures, aimed at improving the efficiency of the economy and increasing its international competitiveness by removing the rigidities in various segments of the Indian economy. The government initiated a variety of policies which fall under three heads viz., liberalisation, privatisation and globalisation.… …Though a few liberalisation measures were introduced in 1980s in areas of industrial licensing, export-import policy, technology upgradation, fiscal policy and foreign investment, reform policies initiated in 1991 were more comprehensive.…” |