Question

State whether the following statements are true or false.

1. Economic reforms were introduced when Dr. Manmohan Singh was the finance minister.

2. Laissez- faire policy advocates minimum state intervention in a market economy.

3. The share of the manufacturing sector in GDP has decreased recently.

Answer 1

1. This statement is true.
Explanation-
Economic reforms were introduced in India in 1991 under the guidance of the then Finance Minister Dr. Manmohan Singh and the late Prime Minister Shri Narasimha Rao.

2. This statement is true.
Explanation-
The term laissez-faire was introduced by the renowned economist Adam Smith in 1776. A laissez-faire economy is one in which there is minimum intervention of the government in the market.

3. This statement is true.
Explanation-
An analysis of the post reform period indicates that the annual average growth rate of the industrial sector has decreased. During the post reform period the annual average growth rate was 6.2% as against 7.6% in the pre-reform period.