UPSC CSE Prelims
Question 81
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 :
View correct answer and explanation
Correct answer: B
Correct Option: B
Explanation: After the 1991 reforms India’s share in world exports, inward foreign investment and foreign-exchange reserves expanded, while agriculture’s GDP share declined as services/industry gained weight.
Statement/Pair-wise Analysis:
Statement/Item 1: Incorrect - Agriculture’s percentage share of GDP fell over the post-1991 period.
Statement/Item 2: Correct - India’s proportion of global exports generally rose over the following decades.
Statement/Item 3: Correct - Foreign direct investment inflows grew with economic opening.
Statement/Item 4: Correct - Foreign exchange reserves rose substantially from the early-1990s crisis levels.
Option-wise Analysis:
A: Incorrect - includes incorrect statement/item 1; omits correct statement/items 2, 3.
B: Correct - includes all and only the true statements/items.
C: Incorrect - omits correct statement/item 4.
D: Incorrect - includes incorrect statement/item 1.