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,

all 4

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only I

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I and II only

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I. II and III

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Solution

The correct option is C I and II only
(c)

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Similar questions

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.

What impact has the GDP growth of 7.8 percent had?

(A) Indian Industry is anxious about India’s economic growth.
(B) India has achieved status as the world’s third largest economy at present.
(C) Foreign investment in India has drastically increased.

Q. Give reasons for the following:

1. Privatisation was encouraged in the New Economic Policy.

2. Under the New Economic Policy, inflow of foreign capital was encouraged.

3. Indian farmers are shifting cultivation from food grains to non-food grains.

Q. A policy initiated by the Indian Government had an adverse impact on the value of Rupee in relation to foreign exchange. What does this indicate? Discuss this with the help of a numerical example. Also explain its effect on the exports and imports of the economy.

Q. What was India's GDP growth prediction for FY

19

, according to

2018

Economic Survey of India?

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The correct option is C I and II only(c)

The correct option is C I and II only
(c)