Question : The Industrial Policy of 1991 aimed at promoting which type of economic reforms?
Option 1: Privatization
Option 2: Liberalization
Option 3: Globalization
Option 4: All of the above
Correct Answer: Privatization
Solution : The correct answer is (d) All of the above
The Industrial Policy of 1991, also known as the New Economic Policy or LPG (Liberalization, Privatization, and Globalization) policy, marked a significant shift in India's economic policies. It was introduced in response to a balance of payment crisis and the need to revitalize the Indian economy.
The policy aimed to liberalize and deregulate the Indian economy, promote private sector participation, and integrate the Indian economy with the global markets. It involved a series of reforms to dismantle the license raj system, reduce government control, and foster competition.
Privatization was a key component of the policy, as it aimed to reduce the presence of the public sector and encourage private sector participation in various industries. It involved the disinvestment and sale of government-owned enterprises to private entities.
Liberalization focused on easing government regulations, simplifying procedures, and opening up various sectors to domestic and foreign investment. It aimed to promote market-oriented policies, encourage entrepreneurship, and enhance the efficiency and competitiveness of Indian industries.
Globalization aimed to integrate the Indian economy with the global markets by facilitating trade liberalization, encouraging foreign direct investment, and promoting exports. It aimed to leverage international markets, technologies, and capital to spur economic growth and development.
Therefore, the Industrial Policy of 1991 aimed at promoting privatization, liberalization, and globalization as part of its comprehensive economic reforms to revitalize the Indian economy and foster sustainable growth.
