UPSC Previous Year Question | Prelims GS | 2017

Which of the following has/have occurred in India after its liberalization 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 code given below:

  1. 1 and 4 only
  2. 2, 3 and 4 only
  3. 2 and 3 only
  4. 1, 2, 3 and 4

Answer

Correct Answer

2, 3 and 4 only

Explanation

After 1991 liberalization, India's export share in world trade increased (2), FDI inflows increased (3), and forex reserves grew substantially (4). However, agriculture's share in GDP actually declined (not increased) as the economy diversified towards services/industry, making statement 1 incorrect.

Topics: economic reforms and liberalization, economy, impact of 1991 liberalization, post-1991 economic changes