CSEET · Economic and Business Environment · Business Environment
The 1991 economic reforms in India are commonly summarised by three terms. Which option lists them correctly?
The 1991 reforms are summarised as Liberalisation, Privatisation and Globalisation, often called LPG. They removed industrial licensing, opened more space for private firms and encouraged foreign trade and investment, moving away from the earlier controlled, protectionist approach.
- ALiberalisation, Privatisation and GlobalisationCorrect
- BNationalisation, Protection and Planning
- CLicensing, Quotas and Subsidisation
- DCentralisation, Regulation and Import substitution
Explanation
The New Economic Policy of 1991 reduced licensing and controls (liberalisation), widened the role of private enterprise and disinvestment (privatisation) and integrated India with world markets (globalisation). The other options describe the earlier controlled, inward-looking regime that was being dismantled.
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