Prelims 2017 · Economy · Question 27
Which of the following has/have occurred in India after its liberalization 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:
Answer
2, 3 and 4 only
1. Share of agriculture in GDP increased enormously — False. After 1991, the share of agriculture in India’s GDP declined, while industry and especially services gained share.
2. Share of India's exports in world trade increased — True. Post-liberalization, India became more integrated with the global economy and its share in world trade rose.
3. FDI inflows increased — True. Economic reforms eased restrictions and FDI inflows increased significantly after 1991.
4. India's foreign exchange reserves increased enormously — True. From the 1991 balance of payments crisis, India’s forex reserves later rose sharply.
Hence, 2, 3 and 4 only are correct.