Question

Find Out Which Is Not the Correct Reason for the Need for Economic Reforms in India.

Answer 1

a) Poor performance of public sector

b) Inflation

c) Surplus of Balance of Payment

d) The huge burden of debt

Answer: c. Surplus of Balance of Payment

India was unable to earn foreign exchange from exports due to a lack of competitiveness of Indian made products, which resulted in a deficit in Balance of Payments ( BoP).

These, along with the poor performance of PSUs, high debt burden and high level of inflation necessitated the need for economic reforms in India.

Also read:

• Economic Reforms
• What is Privatisation?
• Globalisation
• MCQs on Globalisation

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