Economic reforms in India were introduced in which year?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 1991.
Economic reforms in India, popularly known as the LPG (Liberalization, Privatization, and Globalization) reforms, were introduced in 1991.
Facing a severe Balance of Payments crisis—where foreign exchange reserves plummeted to just a few weeks' worth of imports—the Indian government, under Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh, launched these structural changes. The reforms dismantled the restrictive "License Raj," opened the economy to foreign investment, reduced tariffs, and integrated India into the global market, sparking decades of rapid economic growth.