Question

5. Which of the following changes was not a part of industrial sector reforms under the
liberalisation policy?
(a) De-reservation of various goods produced by small-scale industries.
(b) Government to determine the prices of all commodities for maximisation of social
welfare.
(©) A significant reduction in the industries reserved for public sector.
(d) Abolition of licensing policy.

Answer 1

Explanation:

The initial trigger for the policy of economic liberalization in India in 1991 was ... Industrial Sector Reforms; Financial Sector Reforms; Tax Reforms / Fiscal.

Answer 2

Answer:

(b) Government to determine the prices of all commodities for maximisation of social welfare.

Explanation:

• The 1991 economic reforms in India resulted in the economy's liberalisation and a notable increase in its growth rate. These reforms were initiated by India's former Prime Minister Narasimha Rao and had three key goals: globalisation, privatisation, and liberalisation (LPG).
• These changes seek to increase the private sector's contribution to the expansion of the Indian economy. It also caused the government's influence over the nation's industrial facilities to decline.
• After the industrial sector was deregulated in 1991, many items from small-scale industries were no longer reserved.
• Before the industrial sector's liberalisation in 1991, 17 industries were exclusively reserved for the public sector.
• With the exception of the alcohol industry, the industrial licence was eliminated after the 1991 reforms.
• The New Economic Policy of 1991 instituted economic reforms so that market forces, not government, would propel the economy toward development and progress.

Hence (b).

#SPJ3