Skip to content
← Commerce

Commerce · Class 12 Commerce

Ch 20Liberalization, Privatization and Globalization (LPG) — Class 12 Commerce, concept-first.

For roughly four decades after independence, India followed a development strategy in which the government played a very large, direct role in economic decision-making.

26

Q&A

6

Concepts

Not available

Exam weightage

Start learning — read this chapter →

Key concepts

Hover a concept to preview it and jump to its most relevant Q&A.

Liberalization

Liberalization is the process of reducing government rules, restrictions, and controls on the economic activity of private enterprises, giving businesses greater freedom over what to produce, how much to produce, and how…

Most relevant Q&A

Start with this concept →

Chapter contents

The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.

1

Background to India's 1991 Economic Reforms

For roughly four decades after independence, India followed a development strategy in which the government played a very large, direct role in economic decision-making.

2

Liberalization — Meaning and Features

Liberalization refers to the process of reducing government rules, restrictions, and controls on the economic activity of private enterprises, so that businesses gain greater freedom to decide what to…

3

Privatization — Meaning, Forms and Objectives

Privatization refers to the transfer of ownership and/or management of public sector enterprises (PSEs) — businesses owned and run by the government — to the private sector, or, more broadly, to any r…

4

Disinvestment and the Forms of Privatization — A Closer Look

Because disinvestment, strategic sale, and contracting out are often loosely grouped together under the single heading "privatization", it is important to keep the distinctions between them clear, sin…

5

Globalization — Meaning, Features and Impact

Globalization refers to the process of integrating a country's national economy with the world economy, through the freer flow of trade in goods and services, investment, technology, and information a…

6

LPG as an Interrelated Reform Package — Overall Impact on Indian Business

Although Liberalization, Privatization, and Globalization are studied as three separate ideas, they were introduced together, from 1991 onward, as parts of a single, coordinated reform package, and ea…

Very Short Answer Questions

+Show 4 questions4 questions
  1. Q5State the meaning of liberalization.Free
  2. Q6State the meaning of privatization.Free
  3. Q7State the meaning of globalization.Preview
  4. Q8Mention any two forms of privatization.Preview

Short Answer Questions

+Show 3 questions3 questions
  1. Q9What is meant by a Balance of Payments crisis, and how did it lead to the 1991 economic reforms?Free
  2. Q10State any three key measures of liberalization introduced in India after 1991.Preview
  3. Q11Explain briefly the positive and negative impact of globalization on Indian business.Preview

Long Answer Questions

+Show 3 questions3 questions
  1. Q12Explain the background that led to the 1991 economic reforms in India.Free
  2. Q13Explain the meaning and key features of liberalization, and discuss its impact on Indian business.Preview
  3. Q14Explain how Liberalization, Privatization, and Globalization are inter-related, and discuss the overall impact of the LPG reforms on Indian…Preview

Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 12 questions12 questions
  1. Q1______ is the result of New Industrial Policy which abolished the 'License System'. (a) Privatisation (b) Liberalisation (c) Globalisation (…Preview
  2. Q2What is privatisation ?Preview
  3. Q3Write a short note on New Economic Policy.Preview
  4. Q4______ results from the removal of barriers between national economies to encourage the flow of goods, services, capital and labour. (a) Glo…Preview
  5. Q5State the branches of New Economic Policy.Preview
  6. Q6State any three impacts of Globalisaton.Preview
  7. Q7What do you mean by Liberalisation ?Preview
  8. Q8(a) Explain the advantages and disadvantages of liberalisation. (Any five) OR (b) Explain the characteristics of a money market. (Any five)Preview
  9. Q9________ means permitting the private sector to set up industries which were previously reserved for public sector. (a) Globalisation (b) Li…Preview
  10. Q10Give any two advantages of Globalisation.Preview
  11. Q11Write a short note on New Economic Policy.Preview
  12. Q12(a) Explain the highlights of the LPG policy. (any 5) OR (b) Explain in detail the essential elements of Contract of Sale.Preview

More questions

+Show 4 questions4 questions
  1. Q1The pre-1991 Indian economic system, in which a private firm needed government licences and permits for most major business decisions, is po…Free
  2. Q2Reducing government rules, restrictions, and controls on the economic activity of private enterprises is called:Free
  3. Q3The sale of a part of the government's equity shareholding in a public sector enterprise, while the government may retain a remaining stake,…Preview
  4. Q4The process of integrating a national economy with the world economy through the free flow of trade, investment, and technology is called:Preview