Give reasons for adopting a new economic policy?
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india had to adopt set of economic reforms i.e. liberalisation, privatisation and globalisation because of the following factors -
1 mounting fiscal deficit
2 adverse balance of payment
3 gulf crisis
4 fall in foreign reserves
5 rise in prices
6 poor performance of public sector undertakings
1 mounting fiscal deficit
2 adverse balance of payment
3 gulf crisis
4 fall in foreign reserves
5 rise in prices
6 poor performance of public sector undertakings
Answered by
3
Answer:
r. The failure
of the public sector on various fronts was seen as one of the major reasons for lack
of all round development of the country in the area of industrialisation, removal
of poverty and unemployment etc. Hence in 1991, the central government came
out with a new economic policy resolution. The main feature of this policy are:
(i) Liberalization
(ii) Privatization
(iii) Globalization
The policy is also popularly called LPG model of development.
Explanation:
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