Question:
Which of the following was a major objective of the LPG reforms introduced in India in 1991?
Which of the following was a major objective of the LPG reforms introduced in India in 1991?
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LPG is the "Opening of the Doors." L = Fewer rules, P = More private business, G = Connecting with the world.
Updated On: May 30, 2026
- Expansion of the public sector
- Reduction in foreign trade
- Liberalisation of the economy
- Nationalisation of industries
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The Correct Option is C
Solution and Explanation
Step 1: Understanding the Concept:
In 1991, India faced a severe economic crisis. To solve this, the government introduced the New Economic Policy (NEP) based on three pillars: Liberalisation, Privatisation, and Globalisation (LPG).
Step 2: Detailed Explanation:
• Liberalisation: Removing unnecessary government controls and "License Raj" to make it easier to do business.
• Privatisation: Reducing the role of the public sector and encouraging private ownership.
• Globalisation: Integrating the Indian economy with the world economy through trade and investment. Options (A), (B), and (D) represent policies from the pre-1991 era (The "Socialist" model).
Step 3: Final Answer:
The major objective was the Liberalisation of the economy.
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