CA Foundation · Business Economics · Indian Economy
The 1991 economic reforms in India are commonly summarised by three terms. Which of the following correctly expands this set?
LPG stands for Liberalisation, Privatisation and Globalisation. These were the three pillars of the 1991 reforms, which reduced government controls, increased private sector participation and integrated India with the world economy. Nationalisation runs opposite to the reform direction.
- ALiberalisation, Privatisation, GlobalisationCorrect
- BLicensing, Planning, Governance
- CLocalisation, Protection, Growth
- DLiberalisation, Nationalisation, Globalisation
Explanation
The 1991 reforms are known as LPG: Liberalisation, Privatisation and Globalisation. Nationalisation was the opposite of the direction taken, since the reforms reduced the state's role in production and opened the economy to external trade and investment.
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