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LPG Model of development was introduced in India in
1995
1990
1992
1991
None of the above
1991
The LPG (Liberalization, Privatization, and Globalization) model was launched in July 1991 to address India's severe Balance of Payments crisis. This structural adjustment program, often called the New Economic Policy, aimed to integrate the Indian economy with the global market by reducing government control.
The LPG (Liberalization, Privatization, and Globalization) model was launched in July 1991 to address India's severe Balance of Payments crisis. This structural adjustment program, often called the New Economic Policy, aimed to integrate the Indian economy with the global market by reducing government control.
The New Economic Policy 1991 was implemented under the government led by P.V. Narasimha Rao, with Dr. Manmohan Singh serving as the Finance Minister.
Liberalization involved the abolition of the industrial licensing system for most sectors.
Privatization refers to the disinvestment of Public Sector Undertakings (PSUs).
Globalization enabled the reduction of tariffs and encouraged foreign direct investment.
The 1991 reforms were necessitated by a severe depletion of foreign exchange reserves.
The reforms were initiated following a balance of payments crisis where India's foreign exchange reserves were insufficient to cover even three weeks of imports.
The 'New Economic Policy' replaced the inward-looking 'Import Substitution' model followed since independence.
Option B (1990) represents the period leading up to the crisis; Option A (1995) is the year India became a founding member of the World Trade Organization (WTO).
D is correct тАФ The LPG model was formally introduced as part of the New Economic Policy in 1991 to liberalize the Indian economy.
Connect this to the establishment of the WTO in 1995; India shifted from being a restricted closed economy to a globalized member of the WTO, fundamentally changing its trade policy and tariff structure.
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