Indian Economic Reforms 1991 Quiz

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Which of the following best describes the primary trigger for the 1991 economic reforms in India?

A sudden decrease in the fiscal deficit.

A period of high economic growth and expansion in domestic markets.

A significant rise in foreign exchange reserves.

A severe balance of payments crisis and dwindling foreign exchange reserves. (correct)

What was a major consequence of the 1990-91 Iraq War on the Indian economy?

An increase in the inflow of foreign currency from Gulf countries.

A significant reduction in petrol prices.

A rise in petrol prices and a halt in foreign currency inflow from Gulf countries. (correct)

A surge in India's foreign exchange reserves.

What was the primary purpose of liberalizing the Indian economy in 1991?

To reduce the role of private sector.

To increase the control of the government over PSUs.

To remove unnecessary restrictions and controls from the economy. (correct)

To introduce more economic controls and regulations.

Which of these is NOT an objective of economic liberalization in India in 1991?

To decrease foreign direct investment. Signup and view all the answers

Prior to the 1991 reforms, what was a major problem with the performance of Public Sector Undertakings (PSUs)?

They performed poorly due to political interference and became a liability. Signup and view all the answers

Which of the following best describes the state of India's foreign exchange reserves before the 1991 economic reforms?

They were critically low, insufficient to cover import bills for at least two weeks. Signup and view all the answers

By 1991, what percentage of the total government expenditure in India was being allocated to interest liability?

36.4% Signup and view all the answers

What is a significant characteristic of an economy after undergoing liberalisation?

An economy with reduced restrictions and increased private sector participation. Signup and view all the answers

What percentage of government ownership sale typically defines the privatization of a public sector enterprise?

51% Signup and view all the answers

If the government sells off a majority stake in a public sector enterprise, what type of disinvestment is it considered?

Majority Disinvestment Signup and view all the answers

Which of these describes globalisation?

The integration of a country's economy with the world economy Signup and view all the answers

According to the provided content, which of the following represents a disadvantage of globalization in India?

Increased risk to farmers of starvation and suicide Signup and view all the answers

Which policy aimed at promoting public sector ownership of Central Public Sector Enterprises?

The new disinvestment policy of 2014 Signup and view all the answers

According to the content, what was India's GDP growth rate between 1990-91?

1.1% Signup and view all the answers

What negative effect of globalisation is noted in the content regarding agriculture's share of the GDP?

A drastic decline from 1991 to around 18% Signup and view all the answers

Which of the following is NOT mentioned as an effect of globalization in India?

Increased outsourcing to other countries Signup and view all the answers

What was the primary goal of India's liberalization measures regarding industrial licensing?

To abolish industrial licensing for most products. Signup and view all the answers

Which of the following is NOT a characteristic of the liberalization of the Indian financial sector?

Reduced the ability of banks to generate resources from India and abroad Signup and view all the answers

What is the main purpose of the Goods and Services Tax (GST) Act, 2016 in India?

To create a unified indirect tax system. Signup and view all the answers

What was the immediate measure taken in 1991 to address the Balance of Payments crisis in India?

Devaluing the Indian Rupee. Signup and view all the answers

Which of the following describes 'disinvestment' in the context of Indian economic reforms?

Selling off part of the equity of public sector enterprises to the public. Signup and view all the answers

According to the given text, what is the primary impact of globalization on job creation in India?

It has facilitated the growth of outsourcing due to lower wages. Signup and view all the answers

What was the main objective of removing quantitative restrictions on imports in India?

To increase the availability of goods and services. Signup and view all the answers

How did the reforms affect the pricing of goods in most Indian industries?

Prices were determined by market forces. Signup and view all the answers

What is the purpose of removing export duties?

To increase the international competitiveness of Indian goods Signup and view all the answers

Besides the economic aspects, what is part of the broader definition of globalisation presented in the text?

A complex integration that includes social and political boundaries too. Signup and view all the answers