Government of India is seriously thinking to allow oil marketing public sector, undertaking to fix their own price for petrol and diesel.
(i) Name the economic reform related to this decision of government.
(ii) Name other two reforms recommended in new economic policy.

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Solution

(i) Liberalisation
(ii) Other two reforms: Privatisation and Globalisation.

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Q. Government of India is seriously thinking to allow oil marketing public sector, undertaking to fix their own price for petrol and diesel. Name the economic reform related to this decision of government.

The government of India is seriously thinking to allow oil marketing public sector, undertaking to fix their own price for petrol and diesel.___ is the economic reform related to this decision.

Government of India is seriously thinking to allow oil marketing public sector undertakings to fix their own price for petrol and diesel. Which economic reform is the reason of the change in the government policy?

Q. The government initiated a variety of policies in new economic policy which fall under three headings:
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation

Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.

The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms

Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.

Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.
Q - _________ means to free the economy from the direct and physical control imposed by the government.

[0.80 marks]

Q. The government initiated a variety of policies in new economic policy which fall under three headings:
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation

Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.

The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms

Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.

Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.Read the following statements - Assertion (A) and Reason (R) and choose the correct answer from the following:
Assertion (A)- Liberalisation concept to encourage the private sector to take active part in the development process.
Reasons (R) - Industrial Sector Reforms and Financial Sector Reforms were taken by the government under liberalisation.

[0.80 marks]

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Government of India is seriously thinking to allow oil marketing public sector, undertaking to fix their own price for petrol and diesel. (i) Name the economic reform related to this decision of government. (ii) Name other two reforms recommended in new economic policy.

(i) Liberalisation (ii) Other two reforms: Privatisation and Globalisation.

Government of India is seriously thinking to allow oil marketing public sector, undertaking to fix their own price for petrol and diesel.
(i) Name the economic reform related to this decision of government.
(ii) Name other two reforms recommended in new economic policy.

(i) Liberalisation
(ii) Other two reforms: Privatisation and Globalisation.