Question : The 1991 economic policy led to the abolition of the:
Option 1: Planning Commission
Option 2: Reserve Bank of India (RBI)
Option 3: Central Board of Direct Taxes (CBDT)
Option 4: Ministry of Finance
Correct Answer: Planning Commission
Solution : The correct answer is (a) Planning Commission
The 1991 economic policy in India brought significant reforms and changes to the country's economic structure. One of the notable outcomes of these reforms was the abolition of the Planning Commission. The Planning Commission, which was established in 1950, played a crucial role in formulating and implementing economic plans and policies based on a centralized planning approach.
However, with the introduction of liberalization and market-oriented reforms in 1991, the role of the Planning Commission became less relevant. The focus shifted from centralized planning to a more market-driven approach, giving more autonomy and decision-making power to individual sectors, industries, and states.
In 2014, the Planning Commission was officially dissolved, and it was replaced by a new institution called the NITI Aayog (National Institution for Transforming India). The NITI Aayog operates with a different approach, emphasizing cooperative federalism, decentralization, and greater involvement of state governments in the policy-making process.
