DMPQ- . “In 1991 India went through many liberal economic policies which changed India’s economic scenario” Elucidate.

End of license raj

On 24 July 1991, Prime Minister Narasimha Rao announced the end of the license-permit Raj and Finance Minister Manmohan Singh presented a historic budget that rolled out economic liberalisation in India.

It proposed getting rid of the Monopolies and Restrictive Trade Practices asset limit totally. Industrial licensing would be abolished for all projects except for a small list of 18 industries.

Financial sector reforms :

  • Reduce the role of RBI from regulator to facilitator of financial sector.
  • These reforms led to the establishment of private banks.
  • FDI in banks was raised to 50%.
  • But certain managerial aspects have been retained with the RBI, to safeguard the interests of the account holders.

Tax reforms

  • Corporate tax, which was very high earlier has been gradually reduced.
  • The tax procedures have been simplified and the rates also have been lowered.
  • In 1973-74 there were 11 tax slabs, with rates from 10 to 85 per cent. In 1990-91 In five Budgets between 1991-96, FM Manmohan Singh reduces IT slabs to three (20, 30 and 40 per cent).

Trade and investment policy reforms

  • Dismantling of quantitative restrictions on imports.
  • Reduction of tariff rates(taxes on imports)
  • Removal of licensing procedures for imports except in case of hazardous and environmentally sensitive products
  • Quantitative restriction on imports was also fully decreased later.
  • Export duties have been removed to promote exports.
Final Destination for Haryana PSC Notes and Tests, Exclusive coverage of HPSC Prelims and Mains Syllabus, Dedicated Staff and guidence for HPSC Exams HPSC Notes brings Prelims and Mains programs for HPSC Prelims and HPSC Mains Exam preparation. Various Programs initiated by HPSC Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––

Hope we have satisfied your need for HPSC Prelims and Mains Preparation

Kindly review us to serve even better


HPSC Mains Test Series 2020

20 Quality mock tests and GS Mains Notes

Mains Test Series and Notes

Mains Printed Notes (With COD)


HPSC Prelims Test Series 2020

24 Quality mock tests and GS Prelims Notes

Prelims Test Series and Notes

Prelims Printed Notes (With COD)

[jetpack_subscription_form title=”Subscribe to HPSC Notes” subscribe_text=”Never Miss any HPSC important update!” subscribe_button=”Sign Me Up” show_subscribers_total=”1″]

error: Content is protected !!