BP · VIDEOLECTURE

Economic Reforms Part 1 Unit 7

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for VIDEO LECTURES OF ASHISH SIR (FOR ALL SCALES) — Bank Promotions.

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Q

What year marked the beginning of India's major economic reforms?

A

India launched its landmark economic reforms in 1991, triggered by a severe balance of payments crisis and near-depletion of foreign exchange reserves.

Q

What is the 'New Economic Policy' (NEP) introduced in India in 1991?

A

Reform package of LPG: Liberalisation, Privatisation, and Globalisation.

Q

Which policy framework guided India's economic reforms of 1991?

A

The New Economic Policy (NEP) of 1991 guided the reforms, comprising three pillars: Liberalisation, Privatisation, and Globalisation (LPG).

Q

Which Finance Minister presented India's landmark 1991 reform budget?

A

Dr. Manmohan Singh presented the 1991 reform budget.

Q

What was the immediate trigger for India's 1991 economic crisis?

A

India's foreign exchange reserves fell to less than two weeks of import cover in 1991, forcing the government to pledge gold with the IMF and Bank of England to avert default.

Q

What is 'Deregulation' in the context of economic reforms?

A

Removal of government controls and regulations over industries.

Q

What does 'Liberalisation' mean in the context of India's economic reforms?

A

Liberalisation refers to the removal of licensing controls, relaxation of regulations, and reduction of government intervention to allow market forces to operate more freely.

Q

What does 'MRTP Act' stand for and why was it diluted in 1991?

A

Monopolies and Restrictive Trade Practices Act; diluted to encourage competition.

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