Which of the following has/have occurred in India after its liberalization of economic policies in 1991?
- Share of agriculture in GDP increased enormously.
- Share of India’s exports in world trade increased.
- FDI flows increased.
- India’s foreign exchange reserves increased enormously.
Select the correct answer using the codes given below:
1 and 4 only
2, 3 and 4 only
2 and 3 only
1, 2, 3 and 4
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2017
– Statement 2 is correct. Liberalization led to increased trade integration with the global economy, resulting in a rise in India’s share of global exports.
– Statement 3 is correct. Policy changes opened up the Indian economy to foreign investment, leading to a substantial increase in Foreign Direct Investment (FDI) inflows.
– Statement 4 is correct. Increased trade surplus (in some periods), capital inflows (FDI, FII, external commercial borrowings), and remittances led to a massive increase in India’s foreign exchange reserves.