In which year was the New Economic Policy launched in India?
Answer and explanation
Correct answer: 1991
The correct answer is 1991, option C. The governing concept is India’s New Economic Policy, introduced during a severe balance-of-payments crisis. The reforms associated with Finance Minister Manmohan Singh and Prime Minister P. V. Narasimha Rao reduced industrial licensing, encouraged private participation, opened parts of the economy to foreign investment and promoted global integration. These measures are commonly summarized as liberalisation, privatisation and globalisation, or LPG. The year 1985 preceded the reform package, 1990 was the immediate crisis period, and 1992 followed the launch. Therefore, 1991 is the historically appropriate answer.
Frequently asked questions
What is the correct answer to this question?
1991
Why is this the correct answer?
The correct answer is 1991, option C. The governing concept is India’s New Economic Policy, introduced during a severe balance-of-payments crisis. The reforms associated with Finance Minister Manmohan Singh and Prime Minister P. V. Narasimha Rao reduced industrial licensing, encouraged private participation, opened parts of the economy to foreign investment and promoted global integration. These measures are commonly summarized as liberalisation, privatisation and globalisation, or LPG. The year 1985 preceded the reform package, 1990 was the immediate crisis period, and 1992 followed the launch. Therefore, 1991 is the historically appropriate answer.
Which subject and chapter does this question cover?
This is a Class 10 General Knowledge question. Chapter: Indian Economy. Topic: Basic Economic Terms.
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