Which of the following was the aim of Liberalisation under New Economic Policy 1991 of India?
Show answer & explanation
Correct answer: C
Explanation
Liberalization: The New Economic Policy of 1991 - To open various sector of the economy.
The LPG (Liberalization, Privatization, Globalization) reforms were implemented in 1991 under the leadership of then Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh. The primary goal of this liberalization was to make the economy more competitive by removing government controls.
Key Objectives and Steps of Liberalization:
End of the License Raj: The requirement for compulsory licensing for most industries was eliminated, making it easier for entrepreneurs to start new businesses.
Expansion of the Private Sector: Sectors previously reserved for the government (such as telecommunications, mining, etc.) were opened to private companies.
Reduction of Trade Barriers: Strict restrictions and high tariffs on imports and exports were reduced to facilitate global trade.
Market-Based Pricing: Government control over the prices of goods and services was reduced, allowing them to be determined based on market demand and supply.