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SSC GD 2026 PYQ — Question 35

SSC GD Constable - 5 May 2026 - Shift 2 • General Awareness • Q35

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Which trade-related policy reform was introduced in 1991 to stimulate India’s export growth?

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Correct answer: C

Explanation

Correct Answer: Economic Liberalization Policy

Explanation:

Amid a severe Balance of Payments (BoP) crisis in 1991, the Government of India introduced comprehensive economic liberalization reforms under Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh.

These reforms significantly transformed the Indian economy by dismantling the License Raj, reducing tariffs and trade barriers, and opening the economy to foreign investment and global competition.

The reforms also helped promote exports, foreign trade, and greater integration of India with the global economy.

Additional Points:

  • The major economic reforms were introduced in 1991.

  • These reforms are popularly known as the LPG Model.

  • L – Liberalization

  • P – Privatization

  • G – Globalization

  • The reforms aimed to make the Indian economy more competitive, open, and market-oriented.

Important Questions and Answers:

Question: Who was the Prime Minister of India when the economic liberalization reforms were introduced in 1991?
Answer: P.V. Narasimha Rao.

Question: What do L, P, and G stand for in the context of India’s 1991 economic policy?
Answer: Liberalization, Privatization, and Globalization.