Answer :

During the 1990s, the government had faced many problems regarding the foreign exchange and payment of foreign debts in the country. Inflation was becoming uncontrollable, foreign exchange reserves were at an all-time low, and the country had to face other problems in the international market. The Gulf Oil crisis and other economic issues were propelling the country to an all-time low in the economic perspective. The government was compelled to take a revolutionary decision to open up all its restrictions to attract foreign capital and investment. Thus it opened up new opportunities for the private sector to invest in the country. This encouraged private investment in many sectors of the economy that was earlier under the control of government; except in strategic industries like military, railway, and power. The private investment in these sectors led to an increase in their competitiveness and compelled the public enterprises to compete with the private sector leading to increased efficiency in the working of the public sector. This freed the government from providing these services and enabled them to concentrate on other aspects of the economy.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses

‘Industrial activTelangana Board - Social Science

<span lang="EN-USTelangana Board - Social Science

<span lang="EN-USTelangana Board - Social Science

What are basic goTelangana Board - Social Science

Give a list of toTelangana Board - Social Science

Why the governmenTelangana Board - Social Science

Why are industrieTelangana Board - Social Science

<span lang="EN-USTelangana Board - Social Science

Why government inTelangana Board - Social Science

What is the impacTelangana Board - Social Science