Every question from this NCERT chapter, with a detailed explanation.
With reference to the economic crisis of 1991 in India, consider the following statements: 1. The crisis was triggered because the government was unable to make repayments on its borrowings from abroad. 2. Foreign exchange reserves were sufficient for more than a year of imports. 3. The crisis was compounded by rising prices of essential goods. Which of the statements given above is/are correct?
Consider the following statements regarding the deregulation of the industrial sector under the 1991 reforms: 1. Industrial licensing was abolished for all product categories without exception. 2. Industries reserved for the public sector were reduced to only a part of atomic energy generation and some core activities in railway transport. 3. The market was allowed to determine prices in most industries. Which of the statements given above is/are correct?
With reference to the 'Outsourcing' phenomenon under globalisation, consider the following statements: 1. It involves a company hiring regular services from external sources which were previously provided internally. 2. The growth of outsourcing is primarily driven by the stagnation of the manufacturing sector in developed countries. 3. India has become a destination for outsourcing due to low wage rates and the availability of skilled manpower. Which of the statements given above is/are correct?
With reference to the trade policy reforms initiated in 1991, consider the following statements: 1. Quantitative restrictions on imports of manufactured consumer goods were fully removed immediately in 1991. 2. Export duties were removed to increase the competitive position of Indian goods in international markets. 3. Import licensing was abolished except for hazardous and environmentally sensitive industries. Which of the statements given above is/are correct?
Consider the following statements regarding the performance of the agriculture sector during the reform period: 1. Public investment in the agriculture sector has declined in the reform period. 2. The removal of fertiliser subsidy has decreased the cost of production for farmers. 3. There has been a shift from export market production to domestic market production. Which of the statements given above is/are correct?
Consider the following statements regarding the industrial sector performance during the reform period: 1. The industrial growth has recorded a slowdown due to cheaper imports replacing the demand for domestic goods. 2. Infrastructure facilities became world-class due to massive investment. 3. Developing countries like India have not gained sufficient access to developed markets. Which of the statements given above is/are correct?
With reference to the fiscal policy reforms and their impact, consider the following statements: 1. The tax reductions in the reform period resulted in a substantial increase in tax revenue for the government. 2. Reform policies involving tariff reduction curtailed the scope for raising revenue through custom duties. 3. Tax incentives provided to foreign investors further reduced the scope for raising tax revenues. Which of the statements given above is/are correct?
Consider the following statements regarding the 'Navratna' policy: 1. The identified PSEs were stripped of their managerial autonomy. 2. It was introduced to improve efficiency and infuse professionalism in Public Sector Enterprises (PSEs). 3. The government decided to fully privatise all Navratna companies by 2010. Which of the statements given above is/are correct?
With reference to the conditionality imposed by the World Bank and IMF in 1991, India agreed to: 1. Reduce the role of the government in the industrial sector. 2. Increase trade restrictions between India and other countries. 3. Remove restrictions on the private sector. Which of the statements given above is/are correct?
Consider the following statements regarding the foreign exchange reforms: 1. The determination of the rupee value is strictly controlled by the government. 2. Currently, markets determine exchange rates based on demand and supply of foreign exchange. 3. The rupee was devalued against foreign currencies to resolve the balance of payments crisis. Which of the statements given above is/are correct?
With reference to the impact of reforms on the agriculture sector, consider the following statements: 1. The growth rate of the agriculture sector has been decelerating in the reform period. 2. Export-oriented policy strategies led to a shift from cash crops to food grains. 3. Lifting of quantitative restrictions on imports greatly benefited Indian farmers. Which of the statements given above is/are correct?
Consider the following statements regarding the criticism of the disinvestment policy: 1. The assets of Public Sector Enterprises (PSEs) have been undervalued and sold to the private sector. 2. The proceeds from disinvestment are primarily used for the development of PSEs and social infrastructure. 3. It has resulted in a substantial loss to the government. Which of the statements given above is/are correct?
With reference to the World Trade Organisation (WTO), consider the following statements: 1. It was established in 1948 with 23 countries. 2. It is expected to establish a rule-based trading regime. 3. India has kept its commitments to the WTO by removing quantitative restrictions on imports. Which of the statements given above is/are correct?
Consider the following statements regarding the fiscal management in the 1980s that led to the crisis: 1. The government was spending a large share of its income on areas that provided immediate high returns. 2. Government expenditure began to exceed its revenue by large margins. 3. Foreign exchange borrowed was invested in high-return capital projects. Which of the statements given above is/are correct?
Consider the following statements regarding the "Maharatnas, Navratnas, and Miniratnas": 1. They are classifications of Public Sector Enterprises. 2. They were granted status to increase government interference in their functioning. 3. They were given greater managerial and operational autonomy. Which of the statements given above is/are correct?
With reference to the criticism of globalisation, consider the following statements: 1. It is seen as a strategy of poor countries to dominate rich markets. 2. It has compromised the welfare and identity of people belonging to poor countries. 3. It has increased the economic disparities among nations and people. Which of the statements given above is/are correct?
With reference to the foreign investment in India post-1991, consider the following statements: 1. There has been a decline in foreign exchange reserves since 1991 due to profit repatriation. 2. Foreign investment includes both Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII). 3. India has one of the lowest foreign exchange reserves in the world. Which of the statements given above is/are correct?
Consider the following statements regarding the impact of reforms on employment: 1. The GDP growth rate has increased in the reform period. 2. The reform-led growth has generated sufficient employment opportunities in the country. 3. The growth has been concentrated in select areas of the services sector. Which of the statements given above is/are correct?
Match List I with List II and select the correct answer using the code given below: List I | List II A. IBRD | 1. Improving efficiency of the economy B. Stabilisation | 2. Abolished for most industries C. Structural Reform | 3. Correcting Balance of Payments D. Industrial Licensing | 4. Popularly known as World Bank
Which of the following statements is correct regarding the "Foreign Exchange Reserves" of India? 1. They are generally maintained to import petroleum and other important items. 2. In 1991, they were sufficient for more than a year of imports. 3. They consist mainly of gold and silver bullion.
With reference to the Business Process Outsourcing sector, consider the following statements: 1. It includes services such as voice-based business processes, record keeping, and banking services. 2. It has declined due to the growth of Information Technology. 3. It is a major component of the service sector. Which of the statements given above is/are correct?
Consider the following statements regarding the "World Trade Organisation" (WTO): 1. It advocates for the interests of the developing world. 2. India has removed quantitative restrictions on imports to meet WTO commitments. 3. Some scholars argue that developing countries feel cheated as they are forced to open their markets while developed countries do not. Which of the statements given above is/are correct?
Consider the following statements regarding the "Industrial Sector" deregulation: 1. Private sector was not allowed in many industries before 1991. 2. All goods could be produced by any industry before 1991. 3. Controls on price fixation were removed for many industries after 1991. Which of the statements given above is/are correct?
With reference to the "Financial Sector Reforms", banks which fulfil certain conditions have been given freedom to: 1. Set up new branches only with the strict approval of the RBI. 2. Rationalise their existing branch networks. 3. Generate resources from India and abroad.
Consider the following statements regarding the "World Bank" and "IMF": 1. They expected India to increase the role of the government in the economy. 2. India approached them for a loan to manage the 1991 crisis. 3. India rejected their conditionalities and adopted a closed economy policy. Which of the statements given above is/are correct?
Match List I with List II and select the correct answer using the code given below: List I | List II A. Agriculture Sector | 1. Deceleration in growth rate B. Industrial Sector | 2. Registered rapid growth C. Service Sector | 3. Increased significantly D. Foreign Investment | 4. Recorded a slowdown and fluctuations
Consider the following statements regarding the "Public Sector" reforms: 1. The number of industries reserved for the public sector was reduced. 2. Disinvestment was used to increase the government's share in PSUs. 3. Managerial autonomy was granted to successful PSUs like Navratnas. Which of the statements given above is/are correct?