Correct option is B
- PV Narasimha Rao, who served as the Prime Minister of India from 1991 to 1996, was instrumental in introducing the New Economic Policy (NEP) in 1991.
- This policy was a response to India's severe balance of payments crisis and marked the start of liberalization, privatization, and globalization (LPG) reforms.
- Under his leadership, Manmohan Singh, the Finance Minister, implemented reforms that reduced bureaucratic control, opened the economy to foreign investment, and modernized trade policies.
- These measures helped stabilize the economy and laid the foundation for long-term growth and integration into the global market.
Additional Information
· The reforms under the NEP included:
- Industrial De-licensing: Removal of licenses for most industries to promote competition.
- Foreign Investment Promotion: Opening sectors to direct foreign investment.
- Financial Reforms: Simplifying taxation and reducing tariffs to encourage trade.
- Privatization: Divesting public sector enterprises to improve efficiency.
· Significance: These reforms transformed India into a rapidly growing economy and a major player in the global market.
Other Options
- Manmohan Singh: Played a pivotal role as Finance Minister in drafting and implementing the reforms, but he was not the Prime Minister.
- Narendra Modi: Became Prime Minister in 2014, long after the NEP reforms. His policies focused on "Make in India" and digitization, not the LPG framework.
- Atal Bihari Vajpayee: Prime Minister from 1998 to 2004, known for infrastructure projects like the Golden Quadrilateral and telecom reforms, but not associated with the 1991 economic reforms.
