What commitment did India make as part of its globalisation efforts during LPG reforms?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer:
Option 2: To abolish or reduce tariffs on imports
Explanation:
During the LPG reforms of 1991, India committed to globalization by opening its economy to global markets. A key step was reducing or eliminating import tariffs to promote international trade. This made foreign goods accessible and helped Indian industries become competitive globally. It also encouraged foreign investment and technology inflow. This marked India’s transition from a closed to an open economy.
Additional Facts:
Option 1: Increasing tariffs is opposite to globalization.
Option 3: Quantitative restrictions oppose globalization.
Option 4: Non-tariff barriers contradict globalization.
Probable Exam Questions:
Q: When did LPG reforms begin?
A: 1991
Q: Full form of LPG?
A: Liberalization, Privatization, Globalization
Q: When was WTO established?
A: 1995
Q: Meaning of liberalization?
A: Reduction of government control