Which of the following was NOT one of the objectives of the liberalization of the Indian economy in 1991?

Correct option is D

The 1991 economic liberalization aimed to encourage private sector participation, not discourage it. The reforms introduced Liberalization, Privatization, and Globalization (LPG) to increase competition, attract foreign investment, and improve trade policies.

Information Booster:

• Economic Reforms of 1991 were introduced by Dr. Manmohan Singh (Finance Minister) under PM P.V. Narasimha Rao.
• Key measures: Industrial deregulation, tax reforms, reduction in import tariffs.
• Objective: Increase foreign exchange reserves, boost GDP growth, and attract FDI.

Additional Knowledge:

• India adopted LPG (Liberalization, Privatization, Globalization) model in 1991.
• IMF & World Bank played a role in supporting India’s economic reforms.
• The license raj system was dismantled to encourage entrepreneurship.