GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Identify which of the following is not the reason for introducing economic reforms in India?
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Deficit in Balance of Trade
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Deficit in Balance of Payments
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Excess of foreign exchange reserve
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Rise in Price essential goods
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Explanation:
Detailed explanation-1: -These reforms started under the then Prime Minister of India, Narasimha Rao, and it had three main objectives – Liberalisation, Privatisation and Globalisation (LPG). These reforms aimed to enhance the cooperation of the private sector in the growth of the Indian economy.
Detailed explanation-2: -Rise in prices due to inflation. Rise in fiscal deficit. Increase in adverse balance of payments. Reduction in foreign exchange reserves.
Detailed explanation-3: -Panned economy is not the main feature of economic reforms. New economic policy was adopted by the Government of India in the year of 1991. It was based on liberalization, privatization and globalization. It helped to create a more free economy.
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