WBCS.LIVE practice question

In India, Liberal Industrial Policy was adopted in the Year:

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. 1948
  2. 1956
  3. 1985
  4. 1991

Correct answer and explanation

Correct answer: 1991

Explanation: āœ… Correct Answer: D) 1991 šŸ“š Explanation: India adopted a highly liberal and revolutionary New Industrial Policy in July 1991, which officially marked the end of the restrictive 'License Raj' system. This historic policy shift introduced the concepts of Liberalization, Privatization, and Globalization (LPG). It drastically reduced industrial licensing requirements, opened core sectors to private enterprise, and welcomed foreign direct investment. This reform completely transformed the track of the Indian economy.