Question : The 1991 economic policy in India aimed to shift from a __________ economy to a market-oriented economy.
Option 1: Socialist
Option 2: Capitalist
Option 3: Mixed
Option 4: Command
Correct Answer: Socialist
Solution : The correct answer is (a) Socialist
The 1991 economic policy in India aimed to shift from a socialist economy to a market-oriented economy. Prior to the reforms, India followed a mixed economy model with a dominant role of the state in various sectors, including industry, trade, and finance. The government had significant control and regulation over economic activities, and there was limited private sector participation.
The shift towards a market-oriented economy involved various measures such as liberalizing trade and investment, deregulating industries, promoting privatization of state-owned enterprises, and introducing market-based reforms in sectors like finance and taxation.
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Question : The planned economy in India is based on which system?
Option 1: Capitalist system
Option 2: Traditional system
Option 3: Command system
Option 4: Socialist system
Question : The 1991 economic policy in India aimed to address:
Option 1: Increasing government control in the economy
Option 2: High inflation and fiscal deficit
Option 3: Excessive privatization of public enterprises
Option 4: Declining foreign direct investment (FDI)
Question : Which policy aimed to replace import-oriented development with export-oriented growth in India?
Option 1: Swadeshi movement
Option 2: Import substitution
Option 3: Export promotion
Option 4: Public-private partnership
Question : Statement 1: The 1991 economic policy in India aimed to liberalize the Indian economy.
Statement 2: Liberalization refers to the reduction of government restrictions on economic activities.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Question : The 1991 economic policy led to the liberalization of which sector in India?
Option 1: Agriculture
Option 2: Healthcare
Option 3: Services
Option 4: Public transportation
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