Maharashtra State PSC Model Paper 1

The correct answer is A, B and C.

• The New Economic Policy of India 1991 was launched under the leadership of P. V. Narasimha Rao.
• The main components of the new policy are:
  • Liberalisation
  • Privatisation
  • Globalisation  
• Globalisation:
  • It implies removal of protective methods for enabling foreign producers to freely compete in India. 
  • It allows foreign investment without much restriction with in flow of foreign exchange. 
  • It allows substantial reduction in customs duties both in export and import.
• Liberalisation:
  • Abolition of industrial licensing for all projects except a few of strategic importance.
  • Companies were given the freedom to expand and diversify their production capacities based on market requirements. 
  • Reducing the role of public sector with private sector entry.
• Privatisation:
  • Under this, many public sector undertakings (PSUs) were sold to private players.
  • PSUs were disinvested.