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Questions and Answers
Which economic problem was exacerbated by the Gulf crisis resulting in a shortage of resources?
Which economic problem was exacerbated by the Gulf crisis resulting in a shortage of resources?
What was a significant outcome of the Industrial Sector Reforms implemented between 1973 and 1975?
What was a significant outcome of the Industrial Sector Reforms implemented between 1973 and 1975?
What change occurred in the banking sector as a result of liberalization measures?
What change occurred in the banking sector as a result of liberalization measures?
Which economic issue is NOT primarily associated with the consequences of foreign currency shortages?
Which economic issue is NOT primarily associated with the consequences of foreign currency shortages?
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Which of the following statements correctly reflects the controls over sectors post-liberalization?
Which of the following statements correctly reflects the controls over sectors post-liberalization?
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What significant change occurred in 1995 regarding international trade agreements?
What significant change occurred in 1995 regarding international trade agreements?
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What action constitutes a strategic sale by the government?
What action constitutes a strategic sale by the government?
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What proportion of the Indian population resides in rural areas?
What proportion of the Indian population resides in rural areas?
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Which of the following correctly describes non-tariff barriers?
Which of the following correctly describes non-tariff barriers?
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Which of the following is NOT considered a problem of rural areas?
Which of the following is NOT considered a problem of rural areas?
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In which year did the government request a loan from the IMF and World Bank?
In which year did the government request a loan from the IMF and World Bank?
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What is a characteristic of non-institutional sources of rural credit?
What is a characteristic of non-institutional sources of rural credit?
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Which of the following best defines bilateral trade?
Which of the following best defines bilateral trade?
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Regional Rural Banks (RRBs) were established around which year?
Regional Rural Banks (RRBs) were established around which year?
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Which of the following statements about Regional Rural Banks (RRBs) is true?
Which of the following statements about Regional Rural Banks (RRBs) is true?
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What is a primary outcome of globalization as described?
What is a primary outcome of globalization as described?
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Which factor is NOT mentioned as a reason why India is a preferred destination for outsourcing?
Which factor is NOT mentioned as a reason why India is a preferred destination for outsourcing?
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Which combination of terms is associated with creating economic reforms?
Which combination of terms is associated with creating economic reforms?
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What does the process of outsourcing imply for a company?
What does the process of outsourcing imply for a company?
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In the context of globalization, what does the pressure of globalisation refer to?
In the context of globalization, what does the pressure of globalisation refer to?
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What was a significant outcome of the tax reforms related to GST implemented on 29th March 2017?
What was a significant outcome of the tax reforms related to GST implemented on 29th March 2017?
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Which factor contributed to the devaluation of the rupee as part of foreign exchange reforms?
Which factor contributed to the devaluation of the rupee as part of foreign exchange reforms?
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What key change occurred with the shift to a floating exchange rate system?
What key change occurred with the shift to a floating exchange rate system?
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What does the term 'privatization' primarily refer to in the context of economic reform?
What does the term 'privatization' primarily refer to in the context of economic reform?
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In the context of foreign exchange reforms, which of the following duties was eliminated?
In the context of foreign exchange reforms, which of the following duties was eliminated?
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What is the primary goal of a government-regulated market in agriculture?
What is the primary goal of a government-regulated market in agriculture?
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Which of the following policy measures directly aims to protect farmers' incomes?
Which of the following policy measures directly aims to protect farmers' incomes?
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What is an example of diversification of agricultural activities?
What is an example of diversification of agricultural activities?
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Which policy measure contributes to price stabilization in agriculture?
Which policy measure contributes to price stabilization in agriculture?
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What is a potential benefit of diversifying crop production?
What is a potential benefit of diversifying crop production?
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What is the primary purpose of NABARD in the context of rural credit?
What is the primary purpose of NABARD in the context of rural credit?
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Which of the following best describes the duration of long-term loans provided to farmers?
Which of the following best describes the duration of long-term loans provided to farmers?
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What is one of the discussed defects in agricultural marketing?
What is one of the discussed defects in agricultural marketing?
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Which of the following is not considered a source of rural credit?
Which of the following is not considered a source of rural credit?
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What could be a potential strategy for improving agricultural systems as mentioned in the content?
What could be a potential strategy for improving agricultural systems as mentioned in the content?
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What is one of the primary benefits of diversification in agriculture?
What is one of the primary benefits of diversification in agriculture?
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Which of the following is a claim made about organic farming?
Which of the following is a claim made about organic farming?
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What limitation is associated with organic farming?
What limitation is associated with organic farming?
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How does diversification contribute to sustainable development?
How does diversification contribute to sustainable development?
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Which of the following statements about organic farming is incorrect?
Which of the following statements about organic farming is incorrect?
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Study Notes
Economic Reforms
- The 1991 economic reforms were introduced in response to a period of economic crisis in India.
- Key components of the reforms included liberalization, privatization, and globalization.
- Liberalization aimed to reduce government control over the economy, including de-licensing, lowering interest rates, and allowing private banks.
- Privatization involved transferring ownership of public sector undertakings to the private sector through share sales or strategic sales.
- Globalization promoted international trade and investment, leading to outsourcing of services and attracting foreign companies to India.
Economic Problems Before the Reforms
- India faced several economic problems prior to the reforms, including declining foreign reserves, a high fiscal deficit, a negative balance of payments, inflation, and inefficient public sector companies.
Reasons for Economic Reforms
- The reforms were implemented to address the economic problems and promote economic growth.
- Key drivers behind the reforms were globalization, liberalization, privatization, outsourcing, and the World Trade Organization (WTO).
Rural Development
- The majority of India's population (approximately 67%) resides in rural areas.
- Rural areas face several challenges, including poverty, unemployment, limited access to credit, and inadequate infrastructure.
Sources of Rural Credit
- Non-institutional Sources: Informal sources like relatives, friends, and landlords often provide credit at high interest rates.
- Institutional Sources: Formal sources include commercial banks, Regional Rural Banks (RRBs), and Self-Help Groups (SHGs).
Regional Rural Banks (RRBs)
- RRBs were established to provide credit in areas where commercial banks had limited reach.
- These banks focus on rural communities engaged in agriculture and other rural activities.
Agricultural Marketing
- Agricultural marketing faces several challenges, including the presence of middlemen who exploit farmers and lack of proper infrastructure.
Measures to Improve Agricultural Marketing
- Government Regulated Markets: These controlled markets aim to make co-operative marketing more efficient.
- Policy Measures: This includes improving warehousing and transportation, setting Minimum Support Prices (MSP), and maintaining Buffer Stocks.
- Diversification: Encouraging diversification of crop production and agricultural activities to reduce reliance on single crops and boost income.
Benefits of Diversification
- Increased Employment Opportunities: Diversification creates more jobs in various sectors.
- Reduced Risk: It helps mitigate the risks associated with relying on single crops.
- Sustainable Development: Diversification contributes to sustainable and consistent income generation.
Organic Farming
- Organic farming involves producing food without the use of chemical fertilizers and pesticides.
- Benefits: It promotes healthy and tasty food production, reduces environmental impact, and creates employment opportunities.
- Limitations: Organic farming can lead to faster ripening of crops and lower yields compared to conventional methods.
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Description
Explore the significant economic reforms introduced in India in 1991 in response to a major economic crisis. This quiz delves into the key components such as liberalization, privatization, and globalization, as well as the economic challenges that necessitated these changes. Test your knowledge on the historical context and impact of these reforms.
