Question

Statement 1: Economic Reforms of 1991 paved the way for the liberalisation of Indian Economy.

Statement 2: Economic Reforms of 1991 relaxed the restrictions imposed by the government on private sector.

Options

• Statement 1 is true and statement 2 is false.

• Statement 2 is true and statement 1 is false.

• Both statement are true.

• Both statement are false.

Answer 1

Both statement are true.

Explanation:

In 1991, India adopted LPG reforms. Liberalisation was part of the policy, as it removed the government's constraints on the private sector.