Question

In which year New Economic Reforms were started in India?

• A. $1981$
• B. $1991$
• C. $2001$
• D. $1995$

Answer 1

Answer: (B)

$1991$

Due to the fall of the Soviet Union and the problems in the balance of payment accounts, the country faced economic crisis and the $IMF$ asked for the bailout loan. To get out of the situation, then the Finance Minister, Manmohan Singh initiated the economic liberation reform in the year $1991$.

This is considered to being one of the milestones in India economic reform as it changed the market and financial scenario of the country. Under the liberalization program, foreign direct investment was encouraged, public monopolies.