Read the passage and answer the following question:
Globalisation involves a stretching of social and economic relationships throughout the world. This becomes possible through the introduction of certain policies. This process is broadly known as liberalisation in India. Liberalisation technically involves steady removal of rules that regulated trade and finance regulations. Once these are done, it constitutes economic reforms. Besides this liberalisation as a process also involves taking loans from international institutions such as International Monetary Fund (IMF). It is important to mention that certain condition are imposed before loans are sanctioned to a country, which thereby leads to introduction of new economic measures. These conditions constitute the Structural Adjustments. These adjustments usually mean cuts in state expenditure on social sector.
Globalisation involves :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Opening of Borders for market
Option (1) Opening of Borders for market — Correct. Globalisation involves a stretching of social and economic relationships throughout the world, pushed by liberalisation, the policies the Indian state took since 1991 to open up the economy. Before that, a large number of laws had protected the Indian market from the competition of the wider world.
NCERT (2025-26): “a. The Economic Policy of Liberalisation … Globalisation involves a stretching of social and economic relationships throughout the world. This stretching is pushed by certain economic policies. Very broadly this process in India is termed as liberalisation. The term liberalisation refers to a range of policy decisions that the Indian state took since 1991 to open up the Indian economy to the world market. This marked a break with an earlier stated policy of the government to have a greater control over the economy. The state after independence had put in place a large number of laws that ensured that the Indian market and Indian indigenous business were protected from competition of the wider world. The underlying assumption of such a policy was that an erstwhile colonial country would be at disadvantage in a free market situation.…” |