Globalisation, liberalisation and privatisation in India begin in whic...
**Introduction:**
Globalisation, liberalisation, and privatisation are key economic reforms that have transformed the Indian economy. These reforms were implemented in the early 1990s to address the economic crisis that India was facing at that time.
**Explanation:**
The correct answer is option 'A' - 1991. Let's understand why.
**1. Economic Crisis in India:**
In the late 1980s, India was facing a severe economic crisis characterized by high inflation, low foreign exchange reserves, large fiscal deficits, and a balance of payments crisis. The government's interventionist policies and protectionist approach had led to a stagnant economy.
**2. The New Economic Policy:**
To tackle these challenges, the Indian government initiated a series of economic reforms in 1991 known as the New Economic Policy. These reforms aimed to liberalize and open up the Indian economy to global markets, attract foreign investment, and promote private sector participation.
**3. Globalisation:**
Globalisation refers to the integration of economies through the flow of goods, services, capital, and technology across national boundaries. In 1991, India adopted a more open and globalized approach to trade and investment. This involved reducing trade barriers, tariffs, and import licensing, allowing greater foreign direct investment (FDI), and promoting exports.
**4. Liberalisation:**
Liberalisation refers to the deregulation of markets, removal of restrictions, and opening up of sectors to competition. In 1991, India implemented significant liberalisation measures such as dismantling the License Raj, which had imposed excessive regulations on businesses, and allowing private companies to enter various sectors previously reserved for the public sector.
**5. Privatisation:**
Privatisation involves the transfer of ownership and control of state-owned enterprises to the private sector. In 1991, the Indian government started the process of privatisation by selling minority stakes in select public sector companies. This was done to improve efficiency, attract private investment, and reduce the burden on the government's finances.
**Conclusion:**
In conclusion, globalisation, liberalisation, and privatisation in India began in 1991 as part of the New Economic Policy. These reforms aimed to address the economic crisis, open up the Indian economy to global markets, promote private sector participation, and attract foreign investment. These reforms have had a significant impact on India's economic growth and transformation over the past few decades.