Topic Details (Notes format)

Economic Reforms of 1991

Subject: Economics

Book: Comprehensive Indian Economy

In 1991, India faced a severe balance of payments crisis that triggered sweeping reforms known as Liberalization, Privatization, and Globalization (LPG). These reforms dismantled the license-quota system, opened markets to foreign investment, devalued the rupee for export competitiveness, and paved the way for private sector efficiency. The goal was to integrate India with the global economy and revive growth by reducing state controls. Exam-oriented insights include the reasons for the crisis, specifics of structural adjustment policies, and the impact on sectors like banking, trade, and manufacturing over subsequent decades.

Practice Questions

What is a “repo rate”?

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What does “balance of trade” refer to?

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Which of the following is NOT an example of an indirect tax?

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What is the objective of the Goods and Services Tax (GST)?

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What is “CRR” in banking terminology?

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Which of the following is an example of a public sector undertaking (PSU) in India?

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Which of the following is NOT an example of a direct tax?

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Which of the following sectors contributes the most to India’s GDP?

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Which of the following is a feature of a command economy?

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What is the Phillips Curve?

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