Question

After 1991, through which of the following methods did the Government of India allow private companies to operate in sectors that were earlier restricted?

• A. Reducing the number of sectors reserved only for public sector
• B. Public-private partnership
• C. Collaboration with private companies
• D. Reducing the tax rate on the profits of private companies

Answer 1

The correct option is A Reducing the number of sectors reserved only for public sector

As a part of the economic reform, one of the ways of privatisation was to reduce the number of sectors reserved for the public sector. It was reduced from seventeen to eight. This means that the areas reserved for the public sector were now open to private sectors. Now both private companies and the government could do business in such sectors.