Question

Why did india adopt new economic policy of globalization and liberalization 1991?3 marks?

Answer 1

India adopted a new policy of globalisation and liberalisation in 1991 because-

1) The Indian government believed that now the time had come for the Indian producers to compete with producers worldwide.

2) Competition would benefit the consumers and improve performance of producers as the producers would have to improve their quality.

3) This would also allow more and more companies to setup which in turn shall generate employment opportunities.