Which of the following trends were seen in the Indian economy after th...
Trends in the Indian Economy After 1991 Economic Reforms
1. Steady Increase in Growth Rate
After the 1991 economic reforms, the Indian economy witnessed a steady increase in the growth rate. The average GDP growth rate between 1991-92 and 2019-20 was around 6.8%, which is significantly higher than the pre-reform period's growth rate of around 5.6%.
2. Positive Growth Rate in Agriculture
Contrary to popular belief, the agriculture and allied sector has not shown a continuously positive growth rate after the 1991 economic reforms. While the sector did grow at an average annual rate of around 3.5% between 1991-92 and 2019-20, it witnessed fluctuations and even negative growth rates during some years.
3. Decrease in Public Sector Investment
The share of the public sector in total investment decreased after the 1991 economic reforms. The reforms aimed to reduce the government's role in the economy and promote private sector participation, which led to a decrease in public sector investment.
Therefore, the correct statement among the given options is "2 only," which indicates that the agriculture and allied sector has shown a positive growth rate but the share of the public sector in total investment decreased after the 1991 economic reforms.
Which of the following trends were seen in the Indian economy after th...
- In the eighth 5 year plan (1992 - 97) Target Growth was 5.6 % while the Actual Growth 6.8%. In the Ninth Plan (1997- 2002) Target Growth was 6.5% while the Actual Growth: 5.4% In the Tenth Plan (2002 - 2007) the Target Growth was 8 % while the Actual Growth 7.6 % In the Eleventh Plan (2007 - 2012) the Target Growth was 9 % while the Actual Growth is 8%. Hence it is seen that the growth rate fluctuated many times, and it was not steadily increased. Hence statement 1 is not correct.
- After the economic reforms, during the eighth plan period, high growth of agriculture and allied sector, and the manufacturing sector was seen. Hence statement 2 is correct.
- The share of the public sector in total investment had declined considerably to about 34 %. So it decreased.
- Hence statement 3 is not correct.