Read the following statements about the assessment of the reform period:
(A) Scholars point out that reform-led growth has not generated sufficient employment opportunities.
(B) Since 1991, public investment in agricultural infrastructure, such as irrigation, power and roads, has fallen.
(C) The partial removal of fertiliser subsidy has mainly hurt large farmers.
(D) The tax reductions of the reform period have not resulted in an increase in tax revenue for the government.
(E) Industrial growth slowed down mainly because of high tariffs on imported goods.
How many of the above statements are correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Three
(A) Scholars point out that reform-led growth has not generated sufficient employment opportunities. — Correct. Growth rose, but it did not create enough jobs.
(B) Since 1991, public investment in agricultural infrastructure, such as irrigation, power and roads, has fallen. — Correct. Public investment in irrigation, power, roads, market links and research has fallen.
(C) The partial removal of fertiliser subsidy has mainly hurt large farmers. — Incorrect. It raised the cost of production and severely affected the small and marginal farmers.
(D) The tax reductions of the reform period have not resulted in an increase in tax revenue for the government. — Correct. Lower tax rates were meant to raise revenue, but tax revenue did not increase.
(E) Industrial growth slowed down mainly because of high tariffs on imported goods. — Incorrect. Tariffs were reduced in the reforms. Industry slowed because cheaper imports and poor infrastructure cut the demand for its products.
So three statements are correct.
NCERT (2026-27): “Growth and Employment: Though the GDP growth rate has increased in the reform period, scholars point out that the reform-led growth has not generated sufficient employment opportunities in the country. …” “Reforms in Agriculture: Reforms have not been able to benefit agriculture, where the growth rate has been decelerating. Since 1991, public investment in agriculture sector especially in infrastructure, which includes irrigation, power, roads, market linkages and research and extension (which played a crucial role in the Green Revolution), has fallen. Further, the partial removal of fertiliser subsidy has led to increase in the cost of production, which has severely affected the small and marginal farmers. …” “Reforms in Industry: Industrial growth has also recorded a slowdown. This is because of decreasing demand of industrial products due to various reasons such as cheaper imports, inadequate investment in infrastructure etc. …” “Reforms and Fiscal Policies: Economic reforms have placed limits on the growth of public expenditure, especially in social sectors. The tax reductions in the reform period, aimed at yielding larger revenue and curb tax evasion, have not resulted in increase in tax revenue for the government. …” |