Which among the following can be considered as part of ‘Third Generation Reforms’ in India?

1. Promotion of higher investment by the private sector.

2. Greater financial, operational and managerial autonomy to the PSUs.

3. Adoption of Market Determined Exchange Rate.

4. Empowerment of the Panchayati Raj Institutions (PRIs).

Select the correct answer using the code given below:

Though there were no such announcements or proposals while India launched its reforms in 1991, in the coming times, many ‘generations’ of reforms were announced by the governments. A total of three generations of reforms have been announced till date, while experts have gone to suggest the fourth generation, too.

First Generation Reforms (1991–2000): They included: Promotion to Private Sector; Public Sector Reforms; External Sector Reforms; Financial Sector Reforms; Tax Reforms; etc.

Second Generation Reforms (2000–01 onwards): They included doing away with administered prices; Reforms in Government and Public Institutions; Legal Sector Reforms; Reforms in Critical Areas; etc.

Third Generation Reforms: Focus on empowering the Panchayati Raj Institutions.