Question

State whether the following statements are True or False.
New Economic Policy of 1991 aimed at liberalisation of Indian Economy.

• A. True
• B. False

Answer 1

The correct option is A True

It is true that New Economic Policy of 1991 aimed at liberalization of Indian Economy.Liberalization refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprise. It includes:

a) Abolishing industrial licensing requirement in most of the industries.

b) Freedom in deciding the scale of business activities.

c) Freedom in fixing prices of goods and services.

d) Reduction in tax rates.