Practice Questions

Justify the deregulation of the industrial sector by abolishing industrial licensing for most product categories.

Justify the devaluation of the rupee in 1991 as a necessary immediate measure.

Evaluate the success of tax reforms since 1991 in increasing the government's tax revenue.

Identify the two broad groups of policies introduced under the New Economic Policy (NEP) of 1991.

Contrast direct taxes and indirect taxes, providing an example for each.

Name the international organizations that India approached in 1991 for a loan to manage its financial crisis.

Identify the two types of taxes mentioned in the text and provide an example for each.

Compare the primary function of the World Trade Organisation (WTO) with its predecessor, the General Agreement on Trade and Tariff (GATT).

Define the term 'disinvestment' as it relates to public sector enterprises.

Define globalisation as presented in the source text.

Evaluate the assertion that the economic reforms of 1991 have widened the gap between high-income and low-income groups in India.

Analyze how inefficient economic management in the 1980s contributed to the balance of payments crisis in 1991.

Formulate a counter-argument to the criticism that globalisation compromises the welfare and identity of people in developing countries like India.

Compare the objectives of stabilisation measures with those of structural reform measures introduced under the New Economic Policy of 1991.

Explain the key reasons that led to the economic crisis in India in 1991.

List three areas where regulatory mechanisms were enforced in the industrial sector before the 1991 reforms.

Recall the immediate measure taken in the foreign exchange market to resolve the balance of payments crisis in 1991.

Analyze the shift in the role of the Reserve Bank of India (RBI) from a 'regulator' to a 'facilitator' as part of the financial sector reforms.

Examine the impact of tax reforms on the government's revenue and its ability to fund welfare expenditures.

Explain the concept of outsourcing as an outcome of the globalisation process.

Examine the rationale behind granting 'maharatna', 'navratna', and 'miniratna' status to certain Public Sector Enterprises (PSEs).

Demonstrate how outsourcing is a direct outcome of the globalisation process, using the Indian IT sector as an example.

Examine the key reasons for the deceleration in the growth rate of the agricultural sector during the reform period.

Contrast the industrial licensing policy in India before 1991 with the policy after the economic reforms.

Describe the main objective of the financial sector reforms introduced in India.

Apply the arguments presented in the text to analyze why some scholars question the benefits of India's membership in the WTO.

Propose two alternative strategies the Indian government could have considered in the late 1980s to manage its fiscal deficit without resorting to extensive foreign borrowing.

Evaluate the claim that outsourcing, a key outcome of globalisation, has been universally beneficial for the Indian economy and its workforce.

Formulate an argument against the privatisation of profit-making Public Sector Undertakings (PSUs).

Critique the use of disinvestment proceeds to primarily offset government revenue shortages.

Describe the purpose of the World Trade Organisation (WTO).

Justify India's continued membership in the World Trade Organisation (WTO) despite criticisms that it primarily benefits developed nations.

Recall the purpose of granting 'maharatna', 'navratna' and 'miniratna' status to Public Sector Enterprises (PSEs).

Critique the argument that the 'Navratna' policy was a sufficient measure to improve the overall performance and global competitiveness of all Public Sector Enterprises.

Explain why the industrial sector growth recorded a slowdown during the reform period.

Analyze why the service sector has been the primary driver of GDP growth in the post-reform period in India.

Apply your understanding of foreign exchange reforms to explain how the devaluation of the rupee in 1991 was intended to resolve the balance of payments crisis.

Evaluate the impact of trade and investment policy reforms on the competitiveness of domestic manufacturers in India.

Create a policy brief for the government outlining a plan to balance the objectives of attracting Foreign Direct Investment (FDI) with the need to protect local industries and employment.

Summarize the reforms undertaken in India's trade and investment policy since 1991.

Summarize the negative impacts of the reform process on the agriculture sector in India.

Examine the impact of trade and investment policy reforms on the competitiveness and growth of domestic industries in India after 1991.

Analyze the two primary arguments surrounding the policy of disinvestment of Public Sector Enterprises (PSEs) in India.

Critique the effectiveness of the New Economic Policy (NEP) of 1991 in promoting equitable growth across the agriculture, industry, and services sectors in India.

Propose a comprehensive policy to revive the agricultural sector, addressing the key challenges it has faced in the post-reform period.