What does "P" in LPG reforms stand for?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Privatisation.
In the LPG reforms introduced in India in 1991, "P" stands for Privatisation (while 'L' and 'G' stand for Liberalisation and Globalisation). Privatisation refers to reducing the role of the public sector and increasing the involvement of the private sector in managing and owning state enterprises. This was done by selling government shares (disinvestment) and opening up sectors previously reserved exclusively for the government, aimed at improving efficiency, productivity, and economic growth.