Question

Who among the following Prime Ministers radically changed the direction of the Indian economy ?

• A. Atal Bihari Vajpayee
• B. Chandra Shekhar
• C. V.P. Singh
• D. P.V. Narsimha Rao

Hint:

The New Economic Policy of 1991 was brought in by the Narasimha Rao government with Manmohan Singh as Finance Minister.

Answer 1

The Correct Option is D

Step 1: Understand the question:
We need the Prime Minister who brought a radical change in the direction of the Indian economy. This points to the economic reforms of 1991.

Step 2: Recall the 1991 reforms:
In 1991 India faced a severe balance of payments crisis. The government of P.V. Narasimha Rao began liberalisation, privatisation and globalisation. Dr. Manmohan Singh was the Finance Minister.

Step 3: Check option (A) Atal Bihari Vajpayee:
Vajpayee was PM from 1998 to 2004. His government continued the reforms but did not start them. So (A) is wrong.

Step 4: Check option (B) Chandra Shekhar:
Chandra Shekhar led a short government in 1990-91. It faced the economic crisis but did not bring the new policy. So (B) is wrong.

Step 5: Check option (C) V.P. Singh:
V.P. Singh was PM in 1989-90. He is remembered for accepting the Mandal Commission report. So (C) is wrong.

Step 6: Check option (D) P.V. Narsimha Rao:
Narasimha Rao changed the earlier state-led model into a market-friendly one. So (D) is correct.

Final Answer:
P.V. Narasimha Rao radically changed the direction of the economy. The correct option is (D).