Question
Macroeconomics Question on LPG Reforms of 1991
Which of the following measures was NOT initiated by the Government of India as a part of economic reforms in 1991?
A
Announcement of new industrial policy
B
Full convertibility of rupee on the capital account
C
Removal of Quantitative Restrictions
D
Guidelines for investment by Foreign Institutional Investors (FIIs) in the capital market
Answer
Full convertibility of rupee on the capital account
Explanation
Solution
The correct answer is (B): Full convertibility of rupee on the capital account