Question

What was the primary goal of the market deregulation under the LPG reforms in India?

• A. Consolidating state-led market interventions for equitable resource distribution
• B. Encouraging monopolistic practices
• C. Ensuring fair competition and market efficiency
• D. Regulating the prices of essential commodities

Answer 1

Answer:

C. Ensuring fair competition and market efficiency

Market deregulation under the LPG

• The primary goal of market deregulation under the LPG (Liberalisation, Privatisation, and Globalisation) reforms in India was to ensure fair competition and market efficiency.
• This strategic move aimed to reduce government intervention and foster a more competitive and efficient marketplace, allowing market forces to determine prices and allocations rather than relying solely on state control.
• By introducing deregulation, the Indian government sought to promote a dynamic business environment that would encourage innovation, investment, and entrepreneurship.
• Market deregulation in India during the LPG reforms period entailed various measures, including the removal of restrictions on entry and exit barriers for businesses, simplification of licensing processes, and the easing of regulations that inhibited market participation.
• These actions were intended to create a level playing field for businesses, both domestic and foreign, thereby fostering healthy competition and driving overall market efficiency.