With respect to India’s foreign trade, which year is referred to as the year of divide?

Question

Question

This question was previously asked in

SSC CGL 2022 Tier-I Official Paper (Held On : 05 Dec 2022 Shift 3)

Answer 1

The correct answer is 1991.Key Points

With respect to India’s foreign trade, 1991 is referred to as the year of the divide.
Economic reforms were launched in 1991 as the structural adjustment program and it was started by then Prime Minister Narasimha Rao.
India’s New Economic Policy was launched by the then Finance Minister Dr. Manmohan Singh.
The economic changes first became visible in 1991 and radically changed the direction that the Indian Economy had pursued since independence towards a liberalized and open economy.

Additional Information

LPG reforms of 1991 were a strategic shift in the Indian economy that changed the very nature of Indian reality today.
India’s New Economic Policy was announced on July 24, 1991, known as the LPG or Liberalisation, Privatisation, and Globalisation model.
- Liberalization- It refers to the process of making policies less constraining of economic activity and also reduction of tariff or removal of non-tariff barriers.
- Privatization- It refers to the transfer of ownership of property or business from a government to a privately owned entity.
- Globalization- It refers to the expansion of economic activities across political boundaries of nation-states