'Economic Reform' measures in India were formally introduced in

Question

Question

This question was previously asked in

WBCS Prelims 2020 Official Paper

Answer 1

The correct answer is July 1991.

Important Points

Prime Minister P.V. Narsimha Rao and Finance Minister Manmohan Singh began the economic reform process in July 1991.
It was termed as 'liberalization' by the media.
The goal of the reforms was to make the economy more market and service-oriented and expand the role of private and foreign investment.
There was significant opposition to the reforms, but both Rao and Singh continued the reforms.

Key Points

Following the reforms, India's GDP rose from $266 billion to $3 trillion and its purchasing power parity rose from $1 trillion in 1991 to $1.2 trillion in 2019 respectively.
Liberalization: The aim of liberalization was to end the 'license raj' and end the restrictions which were a hindrance in the development and growth of the nation. It also allowed private players to expand their business.
Privatization: Privatization was to reduce the monopoly of public sector companies and increase the role of private sector companies.
Globalization: The aim of globalization was to integrate the Indian economy with the global one.