Which of the following statements is/are correct?
Statement I: Some studies state that the crisis of the early 1990s was basically an outcome of the deep-rooted inequalities in Indian society.
Statement II: According to some studies, growth after the reforms has been concentrated in select services such as telecommunication, information technology and finance.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Both Statement I and Statement II are correct.
Both statements give the view of studies that look at the reforms from the Indian context.
Statement I: Some studies state that the crisis of the early 1990s was basically an outcome of the deep-rooted inequalities in Indian society. — Correct. These studies trace the crisis to deep-rooted inequalities. They add that the reform policies further aggravated these inequalities.
Statement II: According to some studies, growth after the reforms has been concentrated in select services such as telecommunication, information technology and finance. — Correct. Growth stayed in a few select service areas. Agriculture and industry, which give livelihoods to millions, gained less.
NCERT (2026-27): “3.7 Conclusion … Viewed from the Indian context, some studies have stated that the crisis that erupted in the early 1990s was basically an outcome of the deep-rooted inequalities in Indian society and the economic reform policies initiated as a response to the crisis by the government, with externally advised policy package, further aggravated the inequalities. Further, it has increased the income and quality of consumption of only high-income groups and the growth has been concentrated only in some select areas in the services sector such as telecommunication, information technology, finance, entertainment, travel and hospitality services, real estate and trade, rather than vital sectors such as agriculture and industry which provide livelihoods to millions of people in the country.” |