Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

When India agreed to the conditions of World Bank during economic crisis of 1991, it announced New Economic Policy. What was the thought behind introducing the policy?

Options:

To become world's next super power

To create more competitive environment in the economy

To remove the barriers to entry and growth of firms

Both 2 and 3

Correct Answer:

Both 2 and 3

Explanation:

India agreed to the conditions of World Bank and IMF and announced the New Economic Policy (NEP). The NEP consisted of wide ranging economic reforms. The thrust of the policies was towards creating a more competitive environment in the economy and removing the barriers to entry and growth of firms.