Question

Why Were Economic Reforms Introduced in India?

Answer 1

The Indian economy was under tremendous pressure due to a deficit in balance of payments and had exhausted the foreign reserves. At that time, economic reforms were introduced to revive the economy, which were basically new policies that offered a lot of flexibility in the way business was done.

It also removed old restrictions in business such as the MRTP Act, and also paved the way for private sector businesses to open.

Also read:

• Economic Reforms
• MCQs on Liberalisation
• MCQs on Globalisation