BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What were the three branches of Economic Reforms in 1991? Ans. The three branches of the new economic policy of 1991 were Liberalization, Privatization and Globalization.

Detailed explanation-2: -Economic reforms were introduced in the year 1991 for faster and better economic growth. It was initiated by the Narasimha Rao Government for the sake of building people’s trust in the Indian economy.

Detailed explanation-3: -event began with a slide in the value of the rupee leading up to mid-1991. The authorities at the Reserve Bank of India slowed the decline in value by expending international reserves. With reserves nearly depleted, however, the exchange rate was devalued sharply on July 1 and July 3 against major foreign currencies.

Detailed explanation-4: -Though economic liberalization in India can be traced back to the late 1970s, economic reforms began in earnest only in July 1991.

Detailed explanation-5: -Economic reforms of 1991 were ushered in to tide over the balance of payment crisis. This set of reforms focused on three major elements of liberalization, privatisation and globalization. Together they enabled the opening of the Indian economy, however, also led to various issues pertaining to fiscal policy.