Question : The 1991 economic policy in India aimed to shift from a __________ economy to a market-oriented economy.
Option 1: Socialist
Option 2: Capitalist
Option 3: Mixed
Option 4: Command
Correct Answer: Socialist
Solution : The correct answer is (a) Socialist
The 1991 economic policy in India aimed to shift from a socialist economy to a market-oriented economy. Prior to the reforms, India followed a mixed economy model with a dominant role of the state in various sectors, including industry, trade, and finance. The government had significant control and regulation over economic activities, and there was limited private sector participation.
The shift towards a market-oriented economy involved various measures such as liberalizing trade and investment, deregulating industries, promoting privatization of state-owned enterprises, and introducing market-based reforms in sectors like finance and taxation.
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