Question

What Led to LPG Reforms?

Answer 1

LPG reforms were initiated due to the deteriorating conditions of the Indian economy where there was a deficit in balance of payments and India’s foreign exchange reserves were reduced to bare minimum.

These reforms led to the growth of the economy by opening up the economy to the world. Foreign investment increased, the balance of payments deficit was resolved.

Also see:

• MCQs on Liberalisation
• MCQs on Globalisation
• Advantages of Globalisation
• Objectives of Privatisation