Question

.Which of the following policies was introduced as a part of economic reforms in 1991?

• A. Import Restrictions
• B. License Raj
• C. High Tariff System
• D. Privatisation

Answer 1

Answer:

D. Privatisation

Privatisation was a key policy introduced as part of the economic reforms in 1991, aimed at reducing government control over industries and encouraging private sector participation. A major step was to allow private enterprises to set up industries and businesses in previously reserved sectors and controlled by the government as the public sector. The main objective was to improve the efficiency of public sector companies that were suffering losses and stagnation due to the under-utilization of capacity and resources. The measures taken under the process of privatization are as follows: Selling shares of public sector units to allow more involvement of private companies. Disinvestment in public sector units that suffer losses and s8ell out to the private sector. Replacing most of the public sector ownership with private companies to help in industrial development and economic stability.