In which year was the Disinvestment Commission set up in India?
Show answer & explanation
Correct answer: D
Explanation
Correct Answer:
Option 4: 1996
Explanation:
The Disinvestment Commission in India was set up in 1996. Its objective was to reduce the government's stake in Public Sector Undertakings (PSUs) and promote private sector participation. This step was part of the 1991 economic reforms (LPG – Liberalization, Privatization, Globalization). Disinvestment helps generate financial resources for the government and improves efficiency in enterprises. The commission recommended disinvestment in several PSUs, enhancing competitiveness in the economy.
Additional Facts:
Option 1: 1998 is incorrect.
Option 2: 1992 relates to early reforms, not the commission.
Option 3: 1994 is incorrect.
Probable Exam Questions:
Q: When did economic liberalization start in India?
A: 1991
Q: What is the full form of LPG in economics?
A: Liberalization, Privatization, Globalization
Q: What is disinvestment?
A: Reducing government stake
Q: What does PSU stand for?
A: Public Sector Undertaking