Question:medium

When were the economic reforms (New Economic Policy) introduced in India?

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LPG = Liberalisation + Privatisation + Globalisation. The 1991 reforms marked India's transition from a mixed, closed economy to an increasingly open, market-oriented economy.
Updated On: Mar 19, 2026
  • 1985
  • 1991
  • 1999
  • 2001
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the Concept:
In the early 1990s, India faced a severe Balance of Payments (BOP) crisis, leading the government to introduce structural reforms.
Step 2: Detailed Explanation:
The New Economic Policy (NEP) was launched in July 1991 under the leadership of Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh.
The policy was built on the pillars of Liberalization, Privatization, and Globalization (LPG).
It aimed to reduce government control, open the economy to foreign competition, and integrate India with the global market.
Step 3: Final Answer:
The economic reforms were introduced in the year 1991.
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