Question

With reference to the LPG policy, which of the following statements are correct?

• A. Dr. Manmohan Singh was the Prime Minister during the introduction of this policy.
• B. The government removed the system of permits for certain industries under this policy.
• C. The government allowed and encouraged the private sector to invest in industrial activities under this policy.
• D. Restrictions for foreign companies continued under this policy.

Answer 1

Answer: (B), (C)

The government allowed and encouraged the private sector to invest in industrial activities under this policy.

In 1991, the Prime Minister of India, P. V. Narashima Rao, introduced the LPG policy. Under this, the government removed the system of permits for many industries and also allowed and encouraged the private sector to invest in industrial activities. Additionally, foreign companies were invited to do business in India.