Question : The 1991 economic policy in India aimed to address:
Option 1: Increasing government control in the economy
Option 2: High inflation and fiscal deficit
Option 3: Excessive privatization of public enterprises
Option 4: Declining foreign direct investment (FDI)
Correct Answer: High inflation and fiscal deficit
Solution : The correct answer is (b) High inflation and fiscal deficit
The 1991 economic policy in India, often referred to as the New Economic Policy or Economic Reforms of 1991, aimed to address the challenges of high inflation and fiscal deficit. Prior to 1991, India was facing a severe economic crisis characterized by high inflation, a widening fiscal deficit, and a balance of payments problem.
The policy reforms implemented in 1991 focused on liberalizing and opening up the Indian economy to promote economic growth and stability. The reforms included measures such as the dismantling of the license raj, reducing trade barriers, encouraging foreign investment and technology transfer, and adopting market-oriented policies.
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Question : Statement 1: The 1991 economic policy in India aimed to address high inflation and fiscal deficit.
Statement 2: The economic reforms of 1991 were initiated under the leadership of Indira Gandhi.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Question : The economic liberalization reforms of 1991 in India aimed to:
Option 1: Increase state control over the economy
Option 2: Promote self-sufficiency in food production
Option 3: Open the economy to foreign investment and trade
Option 4: Strengthen public sector enterprises
Question : The 1991 economic policy in India aimed to shift from a __________ economy to a market-oriented economy.
Option 1: Socialist
Option 2: Capitalist
Option 3: Mixed
Option 4: Command
Question : Foreign investment is known by which name in India?
Option 1: SME (Small and Medium-sized Enterprises)
Option 2: MDI (Management Development Institute)
Option 3: FDI (Foreign Direct Investment)
Option 4: CII (Confederation of Indian Industry)
Question : Which of the following is a key feature of the New Economic Policy of 1991 in India?
Option 1: Nationalization of industries
Option 2: Protectionist trade policies
Option 3: Privatization of public sector enterprises
Option 4: Central planning of the economy
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