Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

During the reform period, initiated year 1991, what happened to the growth of "Industrial sector"?

Options:

Growth rate increased

Growth rate decreased

Growth rate fluctuated

Growth rate was stagnant

Correct Answer:

Growth rate fluctuated

Explanation:

The reform process has completed three decades since its introduction in 1991. During the reform period, the growth of agriculture has declined. While the industrial sector reported fluctuation, the growth of the service sector has gone up. This indicates that GDP growth is mainly driven by growth in the service sector. During 2012-15, there has been a setback in the growth rates of different sectors witnessed post–1991. While agriculture recorded a high growth rate during 2013–14, this sector witnessed negative growth in the subsequent year. While the service sector continued to witness a high level of growth — higher than the overall GDP growth in 2014–15, this sector witnessed the high growth rate of 9.8 per cent. The industrial sector witnessed a steep decline during 2012– 13, in the subsequent years it began to show a continuous positive growth