Question

State the appropriate concept for the given statement:
Modernisation of Indian economy.

Hint:

The Economic Liberalization of 1991 was a turning point in India's economy, focusing on deregulation, trade liberalization, privatization, and attracting foreign investment to modernize the country’s economic structure.

Answer 1

Step 1: Understanding the Concept:
Modernisation in the economic sense refers to moving away from restrictive state-controlled policies towards a market-friendly environment.
Step 3: Detailed Explanation:
In 1991, India faced a severe balance of payments crisis.
To modernize the economy, the government introduced the New Economic Policy (NEP).
This involved Liberalisation (reducing government restrictions), Privatisation (moving from public to private ownership), and Globalisation (integrating with the world economy).
These steps are collectively known as Economic Liberalisation or LPG reforms.
Step 4: Final Answer:
The modernisation of the Indian economy is characterized by Economic Liberalisation.