CA Foundation · Business Economics · Indian Economy
Which of the following sets of measures forms the three core components of the 1991 economic reforms in India, commonly abbreviated as LPG?
LPG stands for Liberalisation, Privatisation and Globalisation. These were the three pillars of the 1991 reforms: liberalisation dismantled controls like industrial licensing, privatisation reduced government ownership in enterprises, and globalisation opened India to foreign trade, investment and technology.
- ALiberalisation, Privatisation, GlobalisationCorrect
- BLicensing, Planning, Growth
- CLiberalisation, Protection, Globalisation
- DLocalisation, Privatisation, Growth
Explanation
LPG stands for Liberalisation, Privatisation and Globalisation. Liberalisation removed controls such as industrial licensing, privatisation reduced the state's role in business, and globalisation integrated India with the world economy. The other options mix in terms that are not part of the reform package.
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