Explanation
- A
1 and 4 only
Option (a) is 1 and 4 only. Agriculture’s share in GDP fell after 1991 as services and industry grew; it did not increase enormously. Statement 1 is false even though forex reserves did rise. This option is not the key.
- B
2, 3 and 4 only
After 1991 liberalisation, India’s share in world exports rose from a very low base, FDI inflows increased, and foreign-exchange reserves rose sharply from the 1991 crisis low. Agriculture’s GDP share declined. Hence 2, 3 and 4 only is the official key.
- C
2 and 3 only
Option (c) is 2 and 3 only. It omits the also-true reserves boom. This option is therefore incomplete and not the key.
- D
1, 2, 3 and 4
Option (d) is all four. Statement 1 on agriculture’s rising GDP share is the opposite of the structural shift. This option is not the key.
Summary. Official key is (b) 2, 3 and 4 only. Liberalisation opened trade and capital accounts relative to the licence-permit years. Export share, FDI and forex reserves increased; agriculture’s GDP weight shrank. Statement 1 is the classic distractor. Only 2, 3 and 4 occurred as stated.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2017 · Q81 · General Studies · 2 marks
What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below: -
2020 · Q58 · General Studies · 2 marks
With reference to the Indian economy after the 1991 economic liberalization, consider the following statements: 1. Worker productivity (rs. per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas. 2. The percentage share of rural areas in the workforce steadily increased. 3. In rural areas, the growth in non-farm economy increased. 4. The growth rate in rural employment decreased Which of the statements given above is/are correct?