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Which of the following statements reflect the correct picture of reforms?
1. In the domestic economy, major reforms were undertaken in the industrial and financial sectors. 
2. Major external sector reforms included foreign exchange deregulations and import liberalisation.
Q. Which of the above statements is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements reflect the correct picture of refor...
Reforms in India

• India initiated major economic reforms in the early 1990s when it faced a balance of payments crisis.

• The reforms aimed at liberalising and opening up the Indian economy to the world.

• The reforms were based on the recommendations of the Narasimha Rao government and the Manmohan Singh committee.

Domestic Economy Reforms

• Major reforms were undertaken in the industrial and financial sectors.

• Industrial sector reforms included delicensing, deregulation, and privatisation of public sector undertakings.

• Financial sector reforms included the establishment of the Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA), liberalisation of the banking sector, and the introduction of capital account convertibility.

External Sector Reforms

• Major external sector reforms included foreign exchange deregulation and import liberalisation.

• The rupee was made partially convertible on the current account, and foreign investment was encouraged.

• Export incentives were provided to boost exports and reduce the trade deficit.

Conclusion

• The economic reforms of the 1990s were a turning point in Indian economic history.

• The reforms led to significant growth and development in the Indian economy.

• The reforms also had a positive impact on the social and political landscape of India.
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Community Answer
Which of the following statements reflect the correct picture of refor...
The chain of reforms that took place with regards to business, manufacturing, and financial services industries targeted at lifting the economy of the country to a more proficient level. These economic reforms had influenced the overall economic growth of the country in a significant manner.
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Which of the following statements reflect the correct picture of reforms?1. In the domestic economy, major reforms were undertaken in the industrial and financial sectors.2. Major external sector reforms included foreign exchange deregulations and import liberalisation.Q. Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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