Here is Question No. 77 a part of our series on UPSC Prelims 2017
Q77. 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:
a) 1 and 4 only
b) 2, 3 and 4 only
c) 2 and 3 only
d) 1, 2, 3 and 4
The correct answer is 2, 3 and 4 only.
- India’s agriculture sector has gradually reduced its contribution to the Indian economy.
- Agriculture, India’s traditional occupation, now accounts for about 15% of GDP, down from 29% in 1991. Hence, statement 1 is incorrect.
- The economy’s opening has resulted in a 150 per cent increase in foreign direct investment (FDI) and foreign exchange reserves (by 20 times).
- Foreign investment, which includes both direct and indirect investment, has increased from approximately US $ 100 million in 1990-91 to approximately US $ 150 billion in 2003-04. Hence, statements 3 and 4 are correct.
- During the reform period, India is regarded as a successful exporter of IT software, auto parts, textiles, and engineering goods. Hence, statement 2 is correct.
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