Question

Which one of the followings was NOT part of India’s economic reforms in 1991?

• A. Abolition of ‘License Raj’
• B. Encouragement of foreign investment
• C. Devaluation of Rupee
• D. Nationalisation of banks

Hint:

The 1991 reforms focused on liberalization, privatization, globalization, reduction of government control, and opening the economy to foreign investment.

Answer 1

The Correct Option is D

Step 1: Recall what 1991 did.
The 1991 reforms opened the economy. The short name is LPG, that is liberalisation, privatisation and globalisation. The push was for less government control and more market freedom.

Step 2: Match three options to that push.
Ending the licence raj cut red tape. Welcoming foreign investment brought in outside money. Devaluing the rupee helped exports during the payment crisis. All three fit 1991.

Step 3: Spot the odd one.
Bank nationalisation came earlier, in $1969$ and again in $1980$. It put banks under government control, which is the opposite of the 1991 spirit.

Step 4: Conclude.
So the step that was not part of 1991 is the nationalisation of banks.
\[ \boxed{\text{Nationalisation of banks}} \]