Which of the following dates is correct with regard to the announcement of LPG model?
- AOption (a)
August 1991
- BOption (b)
July 1991
- COption (c)
June 1991
- DOption (d)
December 1991
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Correct answer
July 1991
Why this answer is correct
The correct answer is July 1991.
Key Points
- The LPG (Liberalization, Privatization, Globalization) model was announced on July 1, 1991 by the Government of India.
- The LPG model marked a significant shift in India's economic policy, moving from a state-controlled to a market-driven economy.
- It was introduced under the leadership of the then Finance Minister, Dr. Manmohan Singh.
- The LPG reforms aimed at making the Indian economy more competitive and efficient on a global scale.
Additional Information
- Liberalization
- Refers to the process of eliminating restrictions and barriers to economic activities, allowing for greater participation of private entities.
- In India, it involved reducing government control over various sectors, particularly in trade and investment policies.
- Privatization
- Involves the transfer of ownership and management of public sector enterprises to private entities.
- It aimed at improving efficiency and productivity by bringing in private sector management practices.
- Globalization
- Refers to the integration of the Indian economy with the global economy.
- This process involved the removal of trade barriers, allowing for free flow of goods, services, and capital across borders.
- Impact of LPG Reforms
- Led to rapid economic growth and development, making India one of the fastest-growing economies in the world.
- Increased foreign direct investment (FDI) and technological advancements.
- Promoted competition and improved efficiency in various sectors.
- However, it also led to challenges such as increased inequality and job insecurity for certain segments of the population.































































