1991 LPG Reforms In India


India made LPG reforms in 1991. LPG reforms are also known as liberalisation, privatisation and globalisation reforms. They have transformed the way India as an economy works and opened the country up to the world for trade and commerce.  1991 is a memorable time for every Indian. The condition of India at that time was very crucial. In this article, you will get to know about the situtation of India before and after 1991.


Why was the LPG policy required?


India economy around 1991 was in very dangerous situtaion. Nation had remained money only for few weeks. Our governtment decided to mortgaged our gold reserve to get dollar in exanchnge of it. Government decided to send gold in two international banks. Before 1991 policy the scope of private players was limited. Public sector was also not performing well. Many public enterprises suffering from haevy losses at that time. Then India apeal top IMF for bailout package and IMF agreed on it with few conditions and India accepted all conditions. And that's how LPG reforme comes in India. This decision proved so successful that we can see how India was and how India is now. 


How LPG policy proved to be a gamechanger ?