Q. Consider the following statements about the LPG (Liberalisation, Privatisation, Globalisation) reforms in India:

Select the correct answer using the code given below.

2, 3 and 4 only

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1, 2 and 3 only

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1, 3 and 4 only

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None of the above

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Solution

The correct option is D None of the above
Explanation:

Statement 1 is incorrect: Globalisation refers to opening up the economy more towards foreign investment and global trade. One of the measures taken was a reduction of tariffs. A gradual reduction in the customs duties and tariffs on exports and imports to make India attractive to global investment was envisaged. Before 1991, imports to India were regulated by a positive list of freely importable items. From 1992 onwards, the list was replaced by a limited negative list. Almost all intermediate and capital goods were freed from the list for import restrictions.

Statement 2 is incorrect: Under the new industrial policy, only three sectors- atomic energy, mining and railways were to continue as reserved for the public sector. All other sectors were opened for private sector participation.

Statement 3 is incorrect: The New Industrial Policy of 1991 abolished the Monopoly and Restricted Trade Practice Act. The Competition Commission of India (CCI) is the chief national competition regulator in India. It is a statutory body within the Ministry of Corporate Affairs and is responsible for enforcing the Competition Act, 2002 in order to promote competition and prevent activities that have an appreciable adverse effect on competition in India. The commission was established on 14 October 2003. It became fully functional in May 2009 with Dhanendra Kumar as its first Chairman.

Statement 4 is incorrect: The Foreign Exchange Management Act (FEMA) was enacted replacing the draconian Foreign Exchange Regulation Act (FERA).

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Q. India’s economic policies evolved with time. In this context, which of the following pairs is/are correctly matched?

Policy	Feature
Industrial Policy Resolution, 1956	Private sector is barred from managing industries
Industrial Policy Statement, 1980	Abolished the Monopolies Restrictive Trade Practices Act
New Industrial Policy, 1991	Declared Indian economy as mixed Economy

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Q. Consider the following statements about the LPG (Liberalisation, Privatisation, Globalisation) reforms in India: Select the correct answer using the code given below.

Q. Consider the following statements about the LPG (Liberalisation, Privatisation, Globalisation) reforms in India:

Select the correct answer using the code given below.