CSEET · Economic and Business Environment · Indian Economy
The New Economic Policy introduced in India in 1991 is commonly summarised by which three-word set of reform directions?
The 1991 New Economic Policy is summarised as LPG: Liberalisation, Privatisation and Globalisation. These reforms loosened industrial controls, reduced the dominance of the public sector and opened the economy to foreign trade and investment, replacing the earlier licence-based, state-led development model.
- ALiberalisation, Privatisation and GlobalisationCorrect
- BLicensing, Planning and Government control
- CLocalisation, Protection and Gradualism
- DLand reform, Public sector expansion and Nationalisation
Explanation
The 1991 reforms are known as LPG: Liberalisation (reducing controls and licensing), Privatisation (reducing the public sector's dominant role) and Globalisation (integrating with the world economy). The other sets describe the earlier inward-looking, state-led model or unrelated ideas.
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