Q27.
Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. Share of agriculture in GDP increased enormously. 2. Share of India's exports in world trade increased. 3. FDI inflows increased. 4. India's foreign exchange reserves increased enormously. Select the correct answer using the codes given below:
Answer
B
Explanation
The post-reform period shows gradual decline in agriculture sector's contribution to GDP — down from 29% in 1991 to about 15%. Hence statement 1 is incorrect. Share of India's exports in world trade increased since 1991 — statement 2 is correct. FDI has steadily risen since 1991 — statement 3 is correct. Forex reserves are at record high compared to $5.8 billion in 1991, reaching $360.8 billion — statement 4 is correct.