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Question : Which international event acted as a catalyst for economic reforms in India?

 

Option 1: Global financial crisis

Option 2: Cold War

Option 3: Indian independence movement

Option 4: Collapse of the Soviet Union


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Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Collapse of the Soviet Union


Solution : The correct answer is (d) Collapse of the Soviet Union

The collapse of the Soviet Union in 1991 acted as a catalyst for economic reforms in India. The Soviet Union had been a significant economic and political ally of India, and its collapse had far-reaching implications globally.

The collapse of the Soviet Union had a profound impact on India's perception of state-controlled and centralized economic systems. It served as a wake-up call, prompting the Indian government to acknowledge the limitations of its existing economic policies and embrace market-oriented reforms.

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