The New Economic Reforms of 1991 were based on:

Rao Manmohan formula

The correct answer is option (2) - Rao Manmohan formula

The New Economic Reforms of 1991 were primarily based on the "Rao Manmohan formula". This refers to the economic reforms initiated by the then Prime Minister of India, P.V. Narasimha Rao, and his Finance Minister, Dr. Manmohan Singh. These reforms aimed to liberalize and deregulate the Indian economy, moving away from the centrally planned economic model that had been in place since independence. The reforms included measures such as liberalization of trade and investment, privatization of state-owned enterprises, fiscal consolidation, and dismantling of the license raj.