Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

Growth of GDP and major sectors (in %) -

Sectors 1980-1991 1992-2001 2002-2007 2007-2012 2012-2017 XII plan
          Target I Target II
Agriculture 3.6 3.3 2.3 3.2 4.0 4.2
Industry 7.1 6.5 9.4 7.4 9.6 10.9
Services 6.7 8.2 7.8 10.0 10.0 10.0
Total 5.6 6.4 7.8 8.2 9.0 9.5

Identify the sector where the GDP growth has decreased during the reform period till 2007.

Options:

Agricultural sector

Teritary sector

Industry sector

Service sector

Correct Answer:

Agricultural sector

Explanation:

The correct answer is option (1) : Agricultural sector

The reforms in India were started mainly in 1991.

From the data, it is evident that the Agricultural sector experienced a decrease in growth during the reform period starting from till 2007. The growth rate declined from 3.6% (1980-1991) to 2.3% (2002-2007), indicating a reduction in growth over this period.

While the industrial sector reported fluctuation. The growth declined to 6.5 % (1992-2001) from 7.1 (1980-1991) and then increased to 9.4 % during the period 2002-2007.

The growth of the service sector also reported fluctuation. The growth increased from 6.7 % (1980-1991) to 8.2 % (1992-2001)  and then declined to 7.8 % during the period 2002-2007.