Question

Which of the following was the impact of LPG reforms?

1. Foreign banks were allowed in India
2. Devaluation of Rupee
3. Reduction in Corporate tax

• A.
  1 and 3
• B.
  1 and 2
• C.
  2 and 3
• D.
  1,2 and 3

Answer 1

The correct option is D

1,2 and 3
LPG reforms enouraged Private sector participation. As such Foreign banks were allowed to participate in Indian economy, and Corporate taxes were reduced for both Domestic and foreign companies. Rupee was devalued to promote exports in the Globalised market.