Economy of India Quiz

Economic Policies in India

• From independence until 1991, successive governments in India followed socialist-oriented economic policies with a focus on import substitution and state-led industrialization.

Type of Economy

• India currently has a mixed economy, which combines elements of a capitalist economy with a significant role for the state in guiding the economy.

India's GDP Rankings

• According to the International Monetary Fund (IMF), India's rank by GDP (nominal) is 3rd.
• India's rank by GDP (PPP) is 3rd.

GDP Growth Trend

• Since the start of the 21st century, India's annual average GDP growth has been consistently above 7%.

Economic Liberalization

• The adoption of broad economic liberalization in India in 1991 was led by a severe balance of payments crisis and a shortage of foreign exchange.

Characterization of Economic Policies

• The economic policies followed by successive governments in India from independence until 1991 are characterized by a highly regulated economy with a Licence Raj, which refers to a system where the state tightly controls the economy through licenses and permits.

Event Leading to Economic Liberalization

• The Gulf War in 1991 led to a sharp increase in oil prices, which further exacerbated India's economic crisis, leading to the adoption of broad economic liberalization.

Test your knowledge about the economy of India with this quiz. Explore topics such as India's transition from a planned to a developing social market economy, its global economic ranking, and per capita income statistics. Ideal for those interested in understanding India's economic landscape.