| Consider the following statements about the Liberalization, Privatization and Globalization (LPG) model of economic development process in India |
| 1. Disinvestment of profit making Public Sector Enterprises |
| 2. Permitting private sectors to establish Industrial Units without taking a licence. |
| 3. Chronically sick industries were referred BIFR for the formulation of revival or rehabilitation plan. |
| Which of the process/processes given above is/are taken after adoption of LPG model? |
A) 1, 2 and 3
B) 1 and 3
C) 2 and 3
D) Only 2
Correct Answer: A
Solution :
[a] The economy of India had undergone significant policy shifts in the beginning of the 1990s. This new model of economic reforms is commonly known as the LPG or Liberalization, Privatization and Globalization model. The primary objective of this model was to make the economy of the seventh largest country in the world the fastest developing economy in the globe with capabilities that help it match up with the biggest economies of the world. Liberalization refers to the slackening of government regulations. The economic liberalization in India denotes the continuing financial reforms which began since July 24, 1991. Privatization refers to the participation of private entities in businesses and services and transfer of ownership from the public sector (or government) to the private sector as well. Globalization stands for the consolidation of the various economies of the world Given below are the salient highlights of the Liberalization, Privatization and Globalization Policy in India:| ? Foreign Technology Agreements |
| ? Foreign Investment |
| ? MRTP Act, 1969 (Amended) |
| ? Industrial Licensing |
| ? Deregulation |
| ? Beginning of privatization |
| ? Opportunities for overseas trade |
| ? Steps to regulate inflation |
| ? Tax reforms |
| ? Abolition of License Raj or Permit Raj |
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