Test: Economic Reforms In India - UPSC MCQ

The economic reforms in India were initiated in 1991 when the country faced a severe balance of payments crisis, leading to significant changes in the economic policies and liberalization of the Indian economy.

The economic reforms focused on liberalizing the economy and integrating it into the global market, opening up to foreign investment and reducing trade barriers.

Manmohan Singh, who later became the Prime Minister of India, was the Finance Minister when the economic reforms were introduced.

The New Economic Policy emphasized privatization, reducing government intervention, and promoting market-oriented reforms.

The financial sector experienced significant deregulation, allowing more foreign direct investment and private players in banking and insurance.

LPG represents the three main pillars of economic reforms in India - Liberalization, Privatization, and Globalization.

The Industrial Policy of 1991 aimed to encourage foreign competition and attract foreign investment to boost industrial growth in India.

The Rangarajan Committee recommended the establishment of Special Economic Zones to promote exports and attract foreign investments.

Disinvestment policy involves the sale of the government's stake in public sector enterprises to reduce its shareholding in those companies.

No new currency like "Global Currency (GC)" was introduced during the economic reforms. The Indian Rupee continues to be the official currency of India.

The FRBM Act aimed to promote fiscal discipline by reducing fiscal deficits and managing government borrowing.

The telecommunication sector saw a decrease in government control, leading to significant growth and development.

The National Stock Exchange (NSE) was established in 1992 as a major stock exchange in India, offering electronic trading facilities.

The International Monetary Fund (IMF) played a crucial role in shaping the economic reforms in India by providing financial assistance and conditionalities.

FDI stands for Foreign Direct Investment, which refers to investments made by foreign entities in the domestic economy.

SEBI stands for Securities and Exchange Board of India, established in 1992 to regulate the securities market.

The Kelkar Committee was appointed to review and suggest reforms in direct taxes in India.

Initially, the agricultural sector did not witness significant impact or changes during the economic reforms.

One of the objectives of economic reforms was to reduce unemployment by promoting economic growth and generating more job opportunities.

Some critics of the economic reforms raised concerns about India's increasing dependency on foreign aid and the potential loss of economic sovereignty.