Impact of Economic Reforms on Indian Industries

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Questions and Answers

What trend is observed in the fashion industry due to the presence of women in the workforce?

Shift towards formal wear (correct)

Shift towards casual wear

Increased demand for sportswear

Decrease in demand for accessories

What is a consequence of the increasing demand for cosmetic products?

Shift towards organic cosmetics exclusively

Increased competition among manufacturers (correct)

Decreased production of natural products

Reduced advertising budgets

Which of the following food habits is noted in the content?

Shift towards home-cooked meals

Preference for organic food

Increase in vegetarian options

Shift towards packed food (correct)

How has technology impacted the process of booking railway tickets?

Booking is now possible through the internet Signup and view all the answers

What is indicated as a pre-requisite for conducting business effectively?

Awareness of governmental rules and regulations Signup and view all the answers

What can be a consequence of non-compliance with business laws?

Legal problems for the business Signup and view all the answers

Which entity facilitates e-ticket booking according to the content?

Indian Railway Catering and Tourism Corporation Signup and view all the answers

Why is it important to stay informed about legal regulations in business?

To avoid legal repercussions and protect consumer interests Signup and view all the answers

What immediate action did the government take to address its financial obligations in May 1991?

Leased 20 tons of gold to the State Bank of India. Signup and view all the answers

Which policy was reversed according to the new economic reforms in 1991?

Increased role of the public sector. Signup and view all the answers

What financial strategy was employed to raise a loan of $600 million?

Pledging 47 tons of gold to the Bank of England. Signup and view all the answers

Which of the following was a key focus of the new economic reforms in 1991?

Trade liberalization. Signup and view all the answers

What was one of the specific measures taken to simplify economic procedures?

Lifting unnecessary controls over the economy. Signup and view all the answers

Which organization was involved in addressing loss-making and sick enterprises?

Board of Industrial and Financial Reconstruction. Signup and view all the answers

What was the impact of the 1991 economic reforms on foreign capital?

It aimed to make it easier to attract foreign capital and technology. Signup and view all the answers

Which of the following was NOT part of the economic reforms aimed at liberalization?

Mandatory government control of all exports. Signup and view all the answers

What is one of the main effects of demonetisation on private wealth?

Private wealth declined because some high demonetised notes were not returned. Signup and view all the answers

Which section of society is described as being largely outside the digital economy?

Poor individuals Signup and view all the answers

How did demonetisation affect tax collection?

Tax collection rose because of increased disclosure. Signup and view all the answers

What was a significant impact of digitalisation mentioned in the content?

A rise in digital transactions among new users. Signup and view all the answers

Which of the following was not mentioned as an impact of demonetisation?

Increase in real estate prices. Signup and view all the answers

What is a characteristic of the less affluent during the process of digitalisation?

They have access to Jan Dhan Accounts and Rupay cards. Signup and view all the answers

What was the impact of demonetisation on bank deposits?

Bank deposits increased due to cash being deposited. Signup and view all the answers

What was one consequence of increased digitalisation in the economy?

More demanding customers. Signup and view all the answers

What does the technological environment influence in a business?

Methods of producing goods and services Signup and view all the answers

Which factor is NOT part of the political environment?

Economic policies set by the government Signup and view all the answers

What significant change in the economic environment of India occurred in 1991?

Abandonment of central planning Signup and view all the answers

Which of the following best describes the legal environment?

Legislation, court judgments, and regulatory decisions Signup and view all the answers

The economic environment in India has been influenced by which of the following since Independence?

Government control over key industries Signup and view all the answers

What has led to increased competition for Indian firms in the market?

Changes in government licensing rules Signup and view all the answers

Which sector is mentioned as having faced increased competition post-1991?

Service industries Signup and view all the answers

What has become a necessity for firms due to the rapidly changing market environment?

Continuous modification of operations Signup and view all the answers

What impact has liberalisation, privatisation, and globalisation had on the Indian corporate sector?

Increased challenges for smaller firms Signup and view all the answers

How have new technologies impacted business and industry?

They have improved machines, processes, products, and services Signup and view all the answers

What has changed in the competitive landscape for Indian firms after 1991?

Market forces became more turbulent and competitive Signup and view all the answers

Which of the following is NOT a challenge faced by the Indian corporate sector?

Strong market position of public sector firms Signup and view all the answers

Why do firms need to develop new ways to survive in the market?

Increasing competition and consumer expectations Signup and view all the answers

Study Notes

Fashion Trends & Women in the Workforce

Women's increased participation in the workforce led to a shift in fashion trends, with a greater emphasis on practical and functional clothing.

Cosmetic Industry & Demand

The increasing demand for cosmetic products is a direct consequence of heightened awareness of personal appearance, driven by factors such as social media and advertising.

Food Habits

The text highlights a trend toward healthier food choices, with an emphasis on fresh produce and organic ingredients.

Technology & Railway Ticket Booking

Technology has revolutionized railway ticket booking, making it significantly faster and more convenient with services like online ticketing and mobile apps.

Business Prerequisites

Effective business operations depend on a thorough understanding of legal regulations and compliance.

Consequences of Non-Compliance

Non-compliance with business laws can lead to fines, penalties, lawsuits, and damage to reputation.

E-Ticket Booking Facilitator

Online ticketing services or platforms facilitate e-ticket booking, enabling users to purchase and manage tickets digitally.

Importance of Legal Awareness in Business

Staying informed about changes in legal regulations is crucial for businesses to operate ethically and avoid potential legal issues.

Government Action in 1991

To address its financial obligations, the Indian government took immediate action by introducing a series of economic reforms in May 1991.

Policy Reversal in 1991

The new economic reforms in 1991 reversed the previous policy of a closed economy, moving towards a more open and liberalized approach.

Loan Strategy in 1991

A strategy involving a consortium of international financial institutions was employed to secure a $600 million loan to stabilize the Indian economy.

Focus of 1991 Economic Reforms

Liberalization, privatization, and globalization were key elements of the 1991 economic reforms, aimed at transforming the Indian economy.

Simplifying Economic Procedures

One measure taken to simplify economic procedures was streamlining bureaucratic processes and reducing administrative hurdles.

Addressing Loss-Making Enterprises

The Board for Industrial and Financial Reconstruction (BIFR) was established to address the issue of loss-making and sick enterprises, assisting in restructuring and revival.

Impact of 1991 Reforms on Foreign Capital

The economic reforms of 1991 led to a significant increase in foreign capital flows into India, attracting foreign investment and promoting economic growth.

Exclusions from Liberalization Reforms

The economic reforms did not include any major changes in the agricultural sector, focusing primarily on industrial and service sectors.

Demonetisation Impact on Private Wealth

Demonetization resulted in a significant impact on private wealth, with holders of large sums of unaccounted cash facing difficulties in depositing or converting their holdings.

Digital Economy Exclusion

The content suggests that a large segment of society, particularly in rural areas and marginalized communities, remains largely excluded from the digital economy.

Demonetisation Impact on Tax Collection

Demonetization had a positive impact on tax collection, as it forced individuals to declare and pay taxes on previously undeclared income.

Impact of Digitalisation

Digitalization has led to a significant increase in financial inclusion, enabling greater access to banking services for a wider population.

Impacts of Demonetisation

The text does not mention any negative impact of demonetization on bank deposits, suggesting a potential positive impact or neutrality on this aspect.

Characteristic of Less Affluent During Digitalisation

Individuals from less affluent backgrounds often face challenges in adapting to a digital economy, requiring greater support and access to resources.

Demonetisation Impact on Bank Deposits

Demonetization led to an increase in bank deposits, encouraging people to formalize their financial activities.

Consequence of Increased Digitalisation

Increased digitalization has created new opportunities for businesses, enhancing efficiency and expanding market reach.

Technological Environment Influence

The technological environment plays a significant role in influencing business strategies, operations, and overall competitiveness.

Political Environment Factors

The text does not mention any specific factor related to the political environment as being NOT part of it, suggesting that the political environment is a broad concept encompassing various factors.

Economic Environment Change in 1991

The year 1991 marked a significant change in the economic environment of India, as the country transitioned from a closed economy to a more open and liberalized one.

Legal Environment Description

The legal environment comprises a set of laws, regulations, and judicial decisions that govern business activities and shape the operating landscape for Indian businesses.

Influence on Economic Environment

Since independence, the economic environment in India has been influenced by various factors, including government policies, global economic trends, and technological advancements.

Increased Competition for Indian Firms

The liberalization of the Indian economy and increased globalization have led to increased competition for Indian firms, as they face competition from both domestic and foreign companies.

Sector Facing Increased Competition

The manufacturing sector in India has faced increased competition in the post-1991 era due to the opening up of the economy and the entry of foreign players.

Necessity for Firms in a Changing Environment

In a rapidly changing market environment, firms need to be agile and adaptable, constantly innovating and evolving to stay competitive.

Impact on Indian Corporate Sector

Liberalization, privatization, and globalization have had a significant impact on the Indian corporate sector, encouraging growth, efficiency, and internationalization.

Impact of New Technologies

New technologies have revolutionized business and industry, impacting operations, communication, product development, and marketing.

Changed Competitive Landscape

The competitive landscape for Indian firms has changed substantially post-1991, with increased competition from domestic and foreign players and a demand for innovation and efficiency.

Challenges Faced by Indian Corporate Sector

The text does not mention any specific challenge faced by the Indian corporate sector, suggesting a focus on the overall impact of liberalization, privatization, and globalization.

Need for New Survival Strategies

Firms need to develop new ways to survive in the market through innovation, efficiency, and adapting to changing customer preferences and technological advancements.

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Description

Explore how the 1991 Economic Reforms influenced various sectors in India, including fashion, electronics, cosmetics, and food habits. Understand the role of government policies and the legal environment in shaping business operations and consumer protection. This quiz delves into the transformation of industries and the rise in demand across different sectors.