Question

The pre-liberalisation era of Indian economy was under the grip of _____.

• A. unemployment
• B. under employment
• C. fiscal deficit
• D. unfavorable and alarming balance of payments

Answer 1

Answer: (D)

unfavorable and alarming balance of payments

This era began at the time of independence in 1947 and lasted till the introduction of New Economic Policy in 1991 by Dr Manmohan Singh, the then Union finance minister of India. This era is marked by the emergence and growth of popular 'Nehru Model' of development. It was initiated in 1991 with the goal of making the economy more market- and service-oriented, and expanding the role of private and foreign investment and to eradicate the unfavourable and alarming balance of payments.

Hence, D is the correct option.