Consider the following statements about globalisation and the trade reforms of 1991:
(A) Till 1991, the Government of India followed a policy of strictly regulating exports in value and volume terms.
(B) Before 1991, the regulations on imports were with respect to licensing of imports, tariff restrictions and quantitative restrictions.
(C) Rapid advancement in technology and liberal trade policies by Governments have made it possible for a business to serve customers in distant geographical markets.
(D) The trade reforms of 1991 were directed towards export liberalisation and import promotion through rationalisation of the tariff structure.
(E) The trade reforms of 1991 included reforms with respect to foreign exchange so that the country does not remain isolated from the rest of the world.
Which of the statements given above are correct?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (B), (C) and (E) only
(A) Till 1991, the Government of India followed a policy of strictly regulating exports in value and volume terms. — Incorrect. Before 1991, the government strictly regulated imports in value and volume terms. The statement puts exports in place of imports.
(B) Before 1991, the regulations on imports were with respect to licensing of imports, tariff restrictions and quantitative restrictions. — Correct. Imports were controlled in three ways: a licence was needed to import, tariffs (import duties) were charged, and the quantity that could come in was limited.
(C) Rapid advancement in technology and liberal trade policies by Governments have made it possible for a business to serve customers in distant geographical markets. — Correct. Under globalisation, distance and political boundaries are no longer barriers. Better technology and open trade policies let a firm serve far-off buyers.
(D) The trade reforms of 1991 were directed towards export liberalisation and import promotion through rationalisation of the tariff structure. — Incorrect. The reforms aimed at import liberalisation and export promotion. The statement swaps the two words.
(E) The trade reforms of 1991 included reforms with respect to foreign exchange so that the country does not remain isolated from the rest of the world. — Correct. Foreign exchange was also reformed, so that India stays connected with the rest of the world.
NCERT (2026-27 Edition):
|
