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Byju's Answer
Standard XII
Economics
Fiscal Deficit
The initial t...
Question

The initial trigger for the policy of economic liberalization in India in 1991 was ________.

A
Foreign exchange crisis
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B
Shortage of cash
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C
Overpopulation
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D
None of them
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Solution

The correct option is A Foreign exchange crisis
b'The initial trigger for the policy of economic liberalization in India in 1991 was foreign exchange crisis. Before the economic liberalization, foreign exchange reserves of India was dried up owing to problems in balance of payment of the country as a result of which the import of the country was swelled up and there was a high fiscal deficit faced by the government at the same time. '

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Q. The New Economic Policy (1991) was launched in the background of the following economic indicators:
1. India's foreign exchange reserves had fallen to US$1 billion.
2. The fall of the Soviet Union had deprived India of almost a quarter of its export market.
3. There was negative growth in real GDP.
4. Indian rupee had to be devalued by 45 per cent,
Q. Which of the following has/have not 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.
Q. Q. Consider the following pairs concerning Liberalization, privatization and globalization (LPG) reforms introduced by New Economic Policy 1991:
Policy Associated Measures
1. Liberalization A domestic company hiring regular service from a foreign company
2. Privatization Outright sale of public sector companies
3. Globalization Raising of investment limit in banks
Which of the above pairs is/are correctly matched?
Q. Q. Which of the following was the immediate trigger behind the introduction of New Economic Policy, 1991?
Q. Q. Consider the following pairs with respect to Liberalization, privatization and globalization (LPG) reforms introduced by New Economic Policy 1991:
Policy Associated Measures
1. Liberalization A domestic company hiring regular service from a foreign company
2. Privatization Outright sale of public sector companies
3. Globalization Raising of investment limit in banks
Which of the above pairs is/are correctly matched?
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