Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

Which of the following is NOT true about the impact of economic reforms implemented India since 1991?

Options:

economic reform policies have aggravated inequalities existing in Indian society before reforms period.

the growth has been concentrated only in some select areas in the services sector

it has increased the income and quality of consumption of only highincome groups.

none of the above

Correct Answer:

none of the above

Explanation:

In the Indian context, some studies have stated that the crisis that erupted in the early 1990s was basically an outcome of the deeprooted 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 highincome 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