What were the major aspects of the Liberalization, Privatization, and Globalization (LPG) reforms initiated in India in 1991?
Understand the Problem
The text provides an overview of the Liberalization, Privatization, and Globalization (LPG) reforms initiated in India in 1991, also referred to as the New Industrial Policy (NIP). It outlines the key aspects of liberalization, including the abolition of licensing, liberalization of foreign investment, relaxation of locational restrictions, and reforms to public sector units. The focus is on how these reforms aimed to increase economic autonomy and reduce government control over various sectors.
Answer
Removing industrial licensing, boosting privatization, reducing import tariffs, deregulating markets, cutting taxes, and encouraging foreign investment and technology.
The major aspects of the LPG reforms initiated in India in 1991 include: removing the industrial licensing regime, reducing the role of the public sector and boosting privatization, reducing import tariffs, deregulating markets, cutting taxes, and allowing free entry to foreign investment and technology.
Answer for screen readers
The major aspects of the LPG reforms initiated in India in 1991 include: removing the industrial licensing regime, reducing the role of the public sector and boosting privatization, reducing import tariffs, deregulating markets, cutting taxes, and allowing free entry to foreign investment and technology.
More Information
The LPG reforms were significant in reshaping India's economy by opening it up to global markets, increasing efficiency, and driving robust economic growth.
Tips
Avoid mixing up the terms 'liberalization,' 'privatization,' and 'globalization' as they refer to different aspects of the reforms.
Sources
- Features of LPG Policy - byjus.com
- Economic liberalisation in India - Wikipedia - en.wikipedia.org
- Introduction to LPG - toppr.com
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