The disinvestment process of CPSEs (Central Public Sector Enterprises) in India was initiated in the year ______.
Show answer & explanation
Correct answer: C
Explanation
Correct Answer:
Option 3: 1991
Explanation:
The disinvestment process of CPSEs in India began in 1991 as part of the economic reforms known as LPG (Liberalization, Privatization, Globalization). The objective was to reduce the government’s financial burden, increase private sector participation, and improve efficiency and competitiveness in public enterprises. These reforms transformed India into a more open economy. This is a very important topic in economics for exams.
Additional Facts:
Option 1: 1989 is incorrect.
Option 2: 1987 is incorrect.
Option 4: 1985 is incorrect.
Probable Exam Questions:
Q: When did economic liberalization begin in India?
A: 1991
Q: Full form of LPG?
A: Liberalization, Privatization, Globalization
Q: What is disinvestment?
A: Reducing government stake
Q: Which body replaced Planning Commission?
A: NITI Aayog