Correct Answer: Option (4) a, b, c and d
Detailed Explanation:
In response to the severe balance of payments crisis in July 1991, India initiated comprehensive structural adjustment and supply-side economic reforms (the LPG model):
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a. Trade and Capital Flows Reforms:
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Quantitative import restrictions were dismantled, peak customs tariffs drastically slashed, rupee was made fully convertible on the current account (August 1994), and automatic routes for Foreign Direct Investment (FDI) were opened.
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b. Industrial Deregulation:
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The archaic 'License Raj' was dismantled; industrial licensing was abolished for all but a handful of strategic sectors, MRTP limits were phased out, and public sector reservations were scaled down drastically from 17 industries to just 2 (atomic energy and railway operations).
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c. Disinvestment and Public Enterprises Reforms:
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Initiated minority equity stake sales through disinvestment to enhance managerial efficiency, accountability, and market competitiveness, alongside awarding operational autonomy through Navratna and Miniratna schemes.
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d. Financial Sector Reforms:
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Guided by the landmark Narasimham Committee (1991) recommendations: cash reserve ratio (CRR) and statutory liquidity ratio (SLR) were lowered, interest rates deregulated, private/foreign bank entry permitted, and statutory powers conferred on the Securities and Exchange Board of India (SEBI Act, 1992).
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Hence, all four measures (a, b, c, and d) were pivotal components of India's post-1991 structural reforms.
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Historic Reform Date: July 24, 1991 (Prime Minister: P.V. Narasimha Rao, Finance Minister: Dr. Manmohan Singh).
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Paradigm: LPG (Liberalization, Privatization, Globalization).
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Narasimham Committee-I (1991) & Committee-II (1998): Architects of India's banking sector liberalizations.
