Which of the following are correct with reference to economic reforms LPG reforms and public policie...........

Which of the following are correct with reference to economic reforms (LPG reforms) and public policies?

1. Economic reforms have placed limits on the growth of public expenditure especially in social sectors.

2. The reform policies involving tariff reduction have curtailed the scope for raising revenue through customs duties.

3. In order to attract foreign investment, tax incentives were provided to foreign investors which further reduced the scope for raising tax revenues.

Select the correct statements using the codes given below:

1 and 2 only

2 and 3 only

1 and 3 only

All are correct

Explanation:

The economy of India had undergone significant policy shifts in the beginning of the 1990s. This new model of economic reforms is commonly known as the LPG or Liberalisation, Privatisation and Globalisation model. The primary objective of this model was to make the economy of India the fastest developing economy in the globe with capabilities that help it match up with the biggest economies of the world.