Read the passage and answer the following question:
Globalisation involves a stretching of social and economic relationships throughout the world. This becomes possible through the introduction of certain policies. This process is broadly known as liberalisation in India. Liberalisation technically involves steady removal of rules that regulated trade and finance regulations. Once these are done, it constitutes economic reforms. Besides this liberalisation as a process also involves taking loans from international institutions such as International Monetary Fund (IMF). It is important to mention that certain condition are imposed before loans are sanctioned to a country, which thereby leads to introduction of new economic measures. These conditions constitute the Structural Adjustments. These adjustments usually mean cuts in state expenditure on social sector.
Liberalisation was introduced in India in:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 1990
Liberalisation refers to a range of policy decisions that the Indian state took since 1991 to open up the economy; since July 1991 the Indian economy has seen a series of reforms in all its major sectors.
Note 1: The passage of Q6-Q10 is taken from the NCERT chapter ‘Globalisation and Social Change’, its section on the economic policy of liberalisation, with a few words changed. Five questions came from one section of the book, so a careful reading of it pays off.
Note 2: It seems that there is a mistake in the original NTA paper, which prints the options as bare years (1960, 1970, 1980, 1990). Liberalisation began in 1991, so the options are meant as decades, the 1960s to the 1990s; read that way, Option (4) is the only one that fits.
NCERT (2025-26): “a. The Economic Policy of Liberalisation … Globalisation involves a stretching of social and economic relationships throughout the world. This stretching is pushed by certain economic policies. Very broadly this process in India is termed as liberalisation. The term liberalisation refers to a range of policy decisions that the Indian state took since 1991 to open up the Indian economy to the world market. This marked a break with an earlier stated policy of the government to have a greater control over the economy. The state after independence had put in place a large number of laws that ensured that the Indian market and Indian indigenous business were protected from competition of the wider world. The underlying assumption of such a policy was that an erstwhile colonial country would be at disadvantage in a free market situation. Liberalisation of the economy meant the steady removal of the rules that regulated Indian trade and finance regulations. These measures are also described as economic reforms. What are these reforms? Since July 1991, the Indian economy has witnessed a series of reforms in all major sectors of the economy (agriculture, industry, trade, foreign investment and technology, public sector, financial institutions, etc).…” |