What does LPG stand for in the context of India's economic reforms?

The correct answer is Liberalisation, Privatisation, Globalisation.

Key Points

• LPG reforms were introduced in 1991 to address the economic crisis faced by India.
• Liberalisation refers to the relaxation of previous government restrictions in areas such as trade and industry.
• Privatisation involves transferring ownership of businesses from the public sector to the private sector.
• Globalisation signifies the integration of the Indian economy with the global economy through trade, investment, and technology.
• These reforms aimed at improving efficiency, productivity, and competitiveness in the Indian economy.

Additional Information

• Liberalisation
  • It includes measures such as reducing tariffs, lifting export-import restrictions, and deregulating industries.
  • Focuses on free-market policies to stimulate economic growth.
  • Encourages foreign direct investment (FDI) to boost capital inflow.
• Privatisation
  • Aims to reduce the fiscal burden on the government by selling state-owned enterprises.
  • Enhances efficiency by introducing market-driven management practices.
  • Promotes competition and consumer choice.
• Globalisation
  • Encourages international trade and investment.
  • Facilitates the transfer of technology and innovation.
  • Enhances economic interdependence among countries.