Economy2017
Which of the following has/have occurred in India after its liberalisation of economic policies in 1991?
- Share of agriculture in GDP increased enormously.
- Share of India’s exports in world trade increased.
- FDI inflows increased.
- 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.
