Indian Economic Development

Economic Reforms (1991)

Easy

Identify the statement associated with Indian Economic Crisis of 1991?

The income from public sector undertaking was very high.

Our foreign exchange borrowed from other countries and financial institutions was spent on meeting consumption.

Indian govt. income was greater than govt. expenditure

There were sufficient amount of foreign exchange.

✅ Correct Option: 2

The 1991 crisis was characterized by a severe balance of payments problem. Foreign exchange reserves fell to critically low levels, fiscal deficit was high (govt expenditure exceeded income), and borrowed foreign exchange was used for consumption rather than productive investment. Options 1, 3, and 4 describe the opposite of actual crisis conditions. Option 2 correctly identifies a key feature.

2026: 21 May Shift 1

Arrange the following sequence of events related to liberalization, privatisation and globalisation in chronological order.

(A) General Agreement on Trade and Tariff (GATT)

(B) World Trade Organization (WTO)

(D) Introduction of Goods and Service Tax (GST)

Choose the correct answer from the options given below:

2026: 19 May Shift 2

The origin of the financial crisis lead to adoption of structural reforms. Which of the following is not the possible causes for the same?

2023: 11 June Shift 3

Demonetisation in India was taken up by the government in :

2026: 19 May Shift 2

Which of the following is correct about the economic development of India during the five year plans?

2023: 20 June Shift 1

Full form of FII.

2026: 11 May Shift 1

What does NEP stand for, with reference to the 1991 economic reforms in India?

Identify the statement associated with Indian Economic Crisis of 1991?

Solution

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