Which of the following has/have 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 :
- (a) 1 and 4 only
- (b) 2, 3 and 4 only ✓ UPSC's answer
- (c) 2 and 3 only
- (d) 1, 2, 3 and 4
Why the answer is (b)
• After 1991, India's share of world merchandise exports rose from about 0.5% to around 1.7–1.8% (2), FDI inflows grew from under USD 1 billion to over USD 70 billion a year (3), and foreign exchange reserves climbed from about USD 1 billion in 1991 to over USD 600 billion (4).
• Statement 1 is wrong: agriculture's share of GDP fell from about 30% to around 15–18% as services and industry grew.
• Hence 2, 3 and 4 only, option (b).
Why the other options are wrong
- (a) 1 and 4 only
- Statement 1 is wrong: agriculture's GDP share fell.
- (c) 2 and 3 only
- Statement 4 is also correct: reserves rose enormously.
- (d) 1, 2, 3 and 4
- Statement 1 is wrong.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2017, held on 18 June 2017. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.