GK
INDIAN ECONOMY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
substantial changes in industrial licensing policy
|
|
|
the convertibility of Indian rupee
|
|
|
doing away with procedural formalities for foreign direct investment
|
|
|
significant reduction in tax rates
|
Detailed explanation-1: -Economic liberalization in India started in 1991 by making changes in the Industrial licensing policy. This policy aimed at providing more freedom and flexibility to the industries.
Detailed explanation-2: -Nature and Scope of 1991 Reforms: In order to get out of the macro-economic crisis in 1991, India launched a New Economic Policy, which was based on LPG or Liberalisation, Privatisation and Globalisation model. Then Finance Minister, Manmohan Singh, was the prime architect of the historic 1991 liberalisation.
Detailed explanation-3: -Various steps undertaken by the New Industrial Policy 1991 led to the abolition of industrial licensing, dismantling of price controls, dilution of reservations for small-scale industries and the virtual abolition of the monopolies law, relaxation of restrictions on foreign investment, etc.
Detailed explanation-4: -The Indian economy was liberalised within the year 1991. Economic reforms were passed to achieve a number of goals, including modernisation, growth of the role of personal and capital inflows, and the establishment of a free-market economy.