Economic changes post-1991 liberalization
Question
Which of the following has/have occurred in India after its liberalization of economic policies in 1991?
Select the correct answer using the codes given below:
Options
1 and 4 only
2, 3 and 4 only
2 and 3 only
1, 2, 3 and 4
Explanation
Statement 1 is incorrect—the share of agriculture in India's GDP has decreased significantly post-1991 as the economy shifted toward services and manufacturing. Statement 2 is correct—India's share in world trade increased from about 0.5% in 1991 to over 2% by 2017. Statement 3 is correct—FDI inflows increased substantially after liberalization, particularly in the 2000s. Statement 4 is correct—foreign exchange reserves grew from about 5.8 billion in 1991 to over400 billion by 2017. > Agriculture share ↓; Exports ↑, FDI ↑, Forex ↑ post-1991. Answer: b.
Question details
Year
2017
Paper
GS Paper 1
Question
Q77
Subject
Economy
Sub-topic
India's economic reform and growth
Type
Statement-based
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
Economic Survey, Current Affairs
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