Economic reforms in India began in ___ as a response to fiscal and balance-of-payment crises.

1991

True or False: The balance-of-payment crisis of 1991 was solely due to rising foreign debt.

False. The crisis was also influenced by factors such as the First Gulf War and a high fiscal deficit.

Fill in the blanks: Economic reforms in India were triggered by a balance-of-payment crisis and were largely influenced by the ___.

International Monetary Fund (IMF)

What are the two main categories of measures included in India's economic reform program?

Macroeconomic Stabilisation Measures and Structural Reform Measures

The LPG process in India's economic reforms stands for ___, ___, and ___.

Liberalization, Privatization, Globalization

True or False: Liberalization in India means completely eliminating state control over the economy.

False. Liberalization aims to reduce state control while finding a balance between state and market influences.

Fill in the blank: The Third Generation reforms focus on achieving fully functional ___ to ensure inclusive development.

Panchayati Raj Institutions (PRIs)

True or False: Privatization refers to the government retaining full ownership of state-owned enterprises.

False. Privatization involves transferring ownership of state-owned assets to the private sector.

Fill in the blank: The IMF conditions for India included devaluation of the rupee by ___%.

22

True or False: The East Asian economies have struggled to achieve higher growth rates due to their economic reforms.

False. East Asian economies have been successful in achieving higher growth rates and reducing poverty.

What is the significance of structural reform measures in India's economic reforms?

They aim to boost the overall supply of goods and services in the economy.

True or False: India's gradualist approach to economic reforms has resulted in immediate and significant economic outcomes.

False. The gradualist approach has helped avoid instability but has not delivered desired outcomes quickly.

What role did the OECD play in the context of globalization?

It popularized the term globalization and emphasized the integration of economies.

What was one of the main reasons for the introduction of the fiscal Responsibility and Budget Management (FRBM) Act?

To commit to fiscal consolidation.

True or False: The Indian government's response to economic challenges has been solely reactive and has not included proactive measures.

False. The government has adopted proactive measures, including transformational reforms.

What is the ultimate goal of the IMF's involvement in India's economic reforms?

To help India achieve balance in its balance-of-payment situation and make necessary adjustments.