SSC Stenographer 2026 PYQ — Question 28

Solution: The correct answer is FDI reforms.
Explanation:
☛ Under the New Industrial Policy of 1991, the Government of India introduced comprehensive FDI (Foreign Direct Investment) reforms.
☛ This policy granted automatic approval for foreign equity investments up to 51% in 34 high-priority industries, breaking away from the earlier restrictive ceiling of 40%.
☛ The main objective was to invite foreign technology, boost capital inflow, and integrate the Indian economy with global markets under the LPG (Liberalisation, Privatisation, Globalisation) framework.
Extra Exam-Relevant Facts:
☛ New Economic Policy 1991: Launched during the tenure of Prime Minister P. V. Narasimha Rao and Finance Minister Dr. Manmohan Singh.
☛ FIPB (Foreign Investment Promotion Board): Created to review and clear foreign investment proposals that were not eligible for the automatic approval route.
☛ Monopolies control policy: The asset limit criteria under the MRTP Act, 1969 was abolished in 1991, and the Act was later replaced by the Competition Act, 2002.
☛ Land reforms: Focused on the abolition of intermediaries (Zamindari system), tenancy regulation, and land ceiling limits.
☛ MSP policy: Focuses on agricultural price support and is recommended by the CACP (Commission for Agricultural Costs and Prices).
Important One-Liners for Upcoming Exams:
☛ Under whose prime ministership were the 1991 economic reforms launched? → P. V. Narasimha Rao
☛ Which committee's recommendations formed the foundation for financial sector reforms in 1991? → Narasimham Committee
☛ In which year was the Foreign Exchange Management Act (FEMA) enacted to replace FERA? → 1999
☛ Which body was established to prevent anti-competitive practices by replacing the MRTP Commission? → Competition Commission of India (CCI)
☛ How many core infrastructure industries are included in India's Index of Core Industries? → 8 core industries