Question

Q2 which of the following is the reason for changes in economic policy in 1991 in India.​

Answer 1

Answer:

Here we detail about the seven important features of new economic policies under economic reforms, i.e., (1) Liberalisation, (2) Privatisation, (3) Globalisation of the Economy, (4) New Public Sector Policy, (5) Modernisation, (6) Financial Reforms, and (7) Fiscal Reforms.

Answer 2

The reason for changes in economic policy in 1991 in India.​

• The new economic policy of India was launched in the year 1991 under the leadership of P. V. Narasimha Rao.
• This new economic policy opened door to the India Economy for global exposure for the first time.
• The government reduced the import duties, opened reserved sectors for the private players, and devalued the Indian currency to increase export. This is also known as the LPG Model of growth.

The main objectives of the Economic Policy in 1991 are:

• The main objective was to put the Indian Economy into the arena of ‘Globalization' and to give it a new platform for market orientation.
• Another economic policy was to bring down inflation. The main aim was to build sufficient foreign exchange.
• It removed any kind of unnecessary restrictions to achieve economic stabilization and convert the economy into a market economy.
• It allowed the private players to participate in all sections of the economy by reducing the reserved government sectors.
• It permits the international flow of goods, services, capital, human resources and technology, without any restrictions.

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