The ways in which goods and services are exchanged or circulate in India are rapidly changing. Which of the following is the main cause of this change?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → The liberalisation of the Indian economy and globalisation
Option (1) The expansion of the public sector and state planning — Incorrect. Liberalisation moves the other way. It cuts back state control, and public sector industries are privatised or closed, so a growing public sector is not the cause.
Option (2) The liberalisation of the Indian economy and globalisation — Correct. Liberalisation opens Indian markets and reduces government control. Globalisation links them to world trade, so goods and services now change hands in new ways and at new levels, up to global networks like the Nasdaq.
Option (3) The growth of cooperative societies and village haats — Incorrect. Village haats and cooperatives are older forms of local exchange. They are themselves among the markets that liberalisation and globalisation are now changing.
Option (4) The spread of the Green Revolution and land reforms — Incorrect. The Green Revolution and land reforms are changes in farming and land ownership. They belong to agrarian change and leave the recent change in exchange unexplained.
NCERT (2026-27): “Debate on Liberalisation – Market Versus State … |