In 1991, India embarked upon a programme of economic reforms to acheive a higher rate of economic growth by:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Deregulating various sectors including trade and foreign investment
In 1991, India faced a severe economic crisis, which led to the introduction of economic reforms known as Liberalisation, Privatisation, and Globalisation (LPG) reforms. The key features included:
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Deregulation of industries by removing licensing requirements (end of Licence Raj).
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Liberalisation of trade through reduction of tariffs and import restrictions.
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Opening up to foreign investment and encouraging private sector participation.
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Privatisation of public enterprises.
" In 1991, responding to a financial crisis and to the desire for higher rates of economic growth, India embarked on a programme of economic reforms that has sought increasingly to de-regulate various sectors including trade and foreign investment. ".