Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q17 (IAS/2000) Economy › Industry, Infrastructure & Investment › Industrial policy reforms Answer Verified

Economic liberalisation in India started with

Result
Your answer: —  Â·  Correct: A
Explanation

Economic liberalisation in India began with major changes to industrial policy in 1991, spearheaded by the New Industrial Policy announced on 24 July 1991. The reforms aimed to end the Licence‑Permit Raj by delicensing most industries and reducing bureaucratic controls to enable private sector entry and competition [2]. The policy specifically abolished industrial licensing for a large number of sectors and reduced the scope of reserved public sector industries, creating the foundation for further reforms such as easing restrictions on foreign investment and trade liberalisation that followed later [3]. Thus, the initial and defining step of liberalisation was the substantial change in industrial licensing policy rather than immediate currency convertibility, FDI procedural removal, or tax-rate cuts.

Sources

  1. [1] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 11: Industries > Industrial Policy, 1991 > p. 6
  2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 6: Economic Planning in India > LPG (LIBERALISATION, PRIVATISATION AND GLOBALISATION) STRATEGY > p. 136
  3. [3] https://gyansanchay.csjmu.ac.in/wp-content/uploads/2022/10/new-indusrial-policy.pdf
How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
58%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

IAS · 1996 · Q34 Relevance score: 3.93

One of the important goals of the economic liberalisation policy is to achieve full convertibility of the Indian rupee. This is being advocated because

IAS · 2017 · Q77 Relevance score: -1.61

Which of the following has/have occurred in India after its liberalization of economic policies in 1991 ? 1. Share of agriculture in GDP increased enormously. 2. Share of India's exports in world trade increased. 3. FDI inflows increased. 4. India's foreign exchange reserves increased enormously. Select the correct answer using the codes given below :

IAS · 2020 · Q48 Relevance score: -2.31

With reference to the Indian economy after the 1991 economic liberalization, consider the following statements : 1. Worker productivity (₹ per worker at 2004 - 05 prices) increased in urban areas while it decreased in rural areas. 2. The percentage share of rural areas in the workforce steadily increased. 3. In rural areas, the growth in non-farm economy increased. 4. The growth rate in rural employment decreased. Which of the statements given above is/are correct ?

IAS · 1998 · Q93 Relevance score: -2.71

Capital Account Convertibility of the Indian Rupee implies

IAS · 1999 · Q39 Relevance score: -2.85

The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period. Which one of the following is not true in this regard ?