Which of the following has/have occurred in India after its liberalization of economic policies in 1991?
- Share of agriculture in GDP increased enormously.
- Share of India’s exports in world trade increased.
- FDI inflows increased.
- India’s foreign exchange reserves increased enormously.
Select the correct answer using the codes given below:
[UPSC Civil Services Exam – 2017 Prelims]
(a) 1 and 4 only
(b) 2, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3
- The contribution of India’s agriculture sector to the country’s economy has indeed witnessed a gradual decline following economic reforms. Agriculture, which was traditionally a significant occupation in India, now contributes approximately 15% to the GDP, down from 29% in 1991. Hence, statement 1 is not correct.
- The opening up of the Indian economy has resulted in substantial growth in foreign direct investment (FDI) and foreign exchange reserves. FDI has increased by 150%, and foreign exchange reserves have grown by 20 times. Therefore, statements 3 and 4 are correct.
- During the reform period, India has emerged as a successful exporter of various products such as IT software, auto parts, textiles, and engineering goods. Consequently, statement 2 is also correct.