In independent India, major economic liberalization and structural reform policies were first officially introduced in which year?

Introduction / Context:
Economic liberalization marked a major turning point in the history of independent India. In the early 1990s, the country moved away from a heavily controlled economy toward market oriented reforms, including deregulation, reduction of trade barriers, and encouragement of private investment. Exams frequently test the year in which these major reforms were first officially launched, because it is a key milestone in post independence economic history.

Given Data / Assumptions:

• The question refers specifically to independent India.
• It mentions major economic liberalization and structural reforms.
• We must identify the year when these policies were first officially introduced.
• Options include different years from the second half of the twentieth century and early twenty first century.

Concept / Approach:
The approach is to recall that the New Economic Policy associated with liberalization, privatization, and globalization was launched in 1991. This was in response to a serious balance of payments crisis and involved policy changes such as de licensing, reduction of import tariffs, and opening up of many sectors to private and foreign investment. While development planning began in 1951 and various changes occurred in later decades, 1991 is widely recognised as the watershed year for economic reforms in India.

Step-by-Step Solution:
Step 1: Recall that India followed a planned, mixed economy model with strong state control from 1951 onward. Step 2: Remember that by the late 1980s and early 1990s, India faced a severe economic crisis, including high fiscal deficits and low foreign exchange reserves. Step 3: Note that in 1991, under a new government and with guidance from the finance ministry and international institutions, India adopted wide ranging liberalization policies. Step 4: Recognise that this year is commonly cited in textbooks as the beginning of the era of liberalization, privatization, and globalization in India. Step 5: From the options, select 1991 as the correct year.

Verification / Alternative check:
Verification can be done by consulting any standard macroeconomics or Indian economy textbook used for competitive exams. Chapters on economic reforms invariably state that the New Economic Policy, often summarised as LPG reforms, was introduced in 1991. Policy documents and official statements from that time, as well as numerous articles and analyses, also treat 1991 as the starting point of major liberalization. None of the other years in the options are described as such a turning point.

Why Other Options Are Wrong:
The year 1951 marks the beginning of planned development and the First Five Year Plan, but not liberalization. The year 1971 is associated with political events such as the Bangladesh war and nationalisation policies, which actually increased state control. The year 2001 saw continuation of reforms but not their initiation. The year 2014 marks the start of a different government and some new initiatives, yet the foundational liberalization had already taken place long before. Thus, these years are historically important for other reasons but do not answer the specific question about the first introduction of major reforms.

Common Pitfalls:
Students sometimes confuse the start of economic planning in 1951 with the later shift to liberalization in 1991. Others may pick recent years like 2014 because they associate reforms with more current slogans or programmes. To avoid such errors, learners should clearly distinguish between the early planning era, the period of nationalisation and state control, and the post 1991 liberalization phase, and link each phase with its correct starting year.

Final Answer:
The correct answer is 1991.