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Economy2017
Which of the following has/have occurred in India after its liberalisation of economic policies in 1991?
  1. Share of agriculture in GDP increased enormously.
  2. Share of India’s exports in world trade increased.
  3. FDI inflows increased.
  4. India’s foreign exchange reserves increased enormously.
Select the correct answer using the codes given below:

Explanation

The correct answer is option 2, 3 and 4 only because post-1991 liberalisation, India saw significant structural changes in its economy. The share of agriculture in GDP did not increase; instead, it gradually decreased as the economy diversified into manufacturing and services. In contrast, India's share in world exports, FDI inflows, and foreign exchange reserves saw notable increases due to a more open market, improved investor confidence, and economic reforms aimed at enhancing competitiveness. These developments are well-documented in NCERT and other standard references, emphasizing the transformative impact of liberalisation on India's economic landscape.

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