Skip to content
Question

Q.Who among the following was the first Prime Minster to start economic reforms in India ?

(a) Indira Gandhi
(b) Rajiv Gandhi
(c) Manmohan Singh
(d) Inder Kumar Gujral
CBSECBSE Class XII Board 2023MCQ· 1mImportance★★★★★
🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

Rajiv Gandhi was the first Prime Minister among the given options to initiate significant steps towards economic liberalization in India, moving away from the highly regulated 'License Raj' era.

India's economic policy after independence was largely characterized by a socialist framework, with significant state control over industries, extensive regulations, and protectionist trade policies. This period, often referred to as the 'License Raj', aimed at self-reliance but also led to inefficiencies and slower growth. The idea of "economic reforms" generally refers to a shift away from this model towards greater liberalization, privatization, and globalization.

Let's consider the Prime Ministers listed:

  • Indira Gandhi (1966-77, 1980-84): Her tenure was largely marked by a strengthening of socialist policies, including the nationalization of major banks in 1969 and coal mines in 1973. While there were some policy adjustments, her era is not associated with initiating economic liberalization; rather, it reinforced state control and central planning.

  • Rajiv Gandhi (1984-89): He is widely credited with taking the first significant, albeit cautious, steps towards economic liberalization. His government introduced policies aimed at:

    • Easing Industrial Licensing: Reducing the number of industries requiring licenses and simplifying procedures.
    • Promoting Technology and Modernization: Encouraging the import of technology and promoting sectors like computers and telecommunications.
    • Reducing Import Duties: Lowering tariffs on certain goods to encourage competition and modernization.
    • Fiscal Reforms: Attempting to rationalize taxes and improve revenue collection. These measures, though not as sweeping as the later reforms of 1991, represented a clear departure from the previous protectionist and highly regulated regime, laying some groundwork for future changes. …

Unlock everything free for 14 days

  • Full step-by-step solutions
  • Concept-first explanations
  • Methods, shortcuts & mistakes
  • PYQ mapping + timed mock tests

Full access for 14 days. No credit card required.