Question

Which of the following points indicate the positive impact of LPG policy?

Options

• A vibrant economy

• A stimulant to industrial production

• A check on fiscal deficit

• All of the above

Answer 1

All of the above

Explanation:

The twin implications of LPG policy on the Indian economy are as follows:

1. A vibrant economy:
   The Indian economy has clearly grown more vibrant. After the introduction of the concepts of llberaltsatton, privatisation, and globalization, the overall level of economic activity has clearly increased. The results can be seen in the substantial increase in the GDP growth rate.
2. A stimulant to industrial production: 
   The Indian economy has benefited greatly from LPG policies, which have boosted industrial productivity. Industrial production is currently hovering around 10%, a significant increase over pre -1991 levels.
3. A check on fiscal deficit:
   The growing budget imbalance has posed a severe danger to the Indian economy's investment process. Prior to 1991, it reached as high as 8.5 percent. Government revenue has increased significantly as a result of the LPG programs.