Question

Economic reforms towards liberalization were introduced in the year?
1. 1991
2. 1995
3. 2001
4. 2014

Answer 1

Correct Answer - Option 1 : 1991

The correct answer is 1991.

• Economic reforms towards liberalization were introduced in the year 1991.

• Liberalization policy was introduced by PV Narasimha Rao in 1991.
  • The license raj, considered to be the key to India's success, was gradually replaced and the liberalization policy changed.
  • Liberalization resulted in substantial growth in the Indian economy.
  • The reforms started with the devaluation of the rupee on 1 July 1991.
  • The reforms were aimed at making the Indian economy more service-oriented and market-driven.
  • Expanding the role of foreign and private investment.
  • Policy changes: Foreign investment, industrial licensing, the introduction of advanced technology.