Liberalisation, Privatisation and Globalisation quiz

The New Economic Policy was announced in:

The WTO was set up in:

The WTO succeeded:

Which of these industries remained reserved for the public sector after 1991?

Devaluation of the rupee means:

Outsourcing has grown mainly due to:

GST was introduced in India in:

Disinvestment means:

Which of the following is a stabilisation measure?

After 1991, the role of the RBI changed from:

Why did India approach the IMF and the World Bank in 1991? (2 marks)

What were the industrial sector reforms of 1991? (2 marks)

What is meant by globalisation? (2 marks)

Why is India a favourite destination for outsourcing? (2 marks)

What is the role of the WTO? (2 marks)

How did the reforms affect agriculture? (2 marks)

Why did the government disinvest in public sector enterprises? (2 marks)

What is GST? Why was it introduced? (2 marks)

What was demonetisation, and when was it carried out? (2 marks)

What are quantitative restrictions on imports? (2 marks)

India's exports rose from 18 billion dollars in 1990-91 to 44 billion dollars in 2000-01. Calculate the percentage increase. (3 marks)

A company's import duty fell from 40% to 10% on goods worth Rs 50 lakh. Calculate the saving. (3 marks)

Foreign direct investment rose from 0.1 billion dollars in 1990-91 to 4 billion dollars in 2000-01. Calculate how many times it increased. (3 marks)

A public sector unit earns a profit of Rs 2,000 crore on capital of Rs 25,000 crore. Calculate its rate of return. (3 marks)

The fiscal deficit was 8% of a GDP of Rs 5 lakh crore. Calculate the fiscal deficit in Rs crore. (3 marks)

Read the passage and answer the questions. By 1991, India faced a balance of payments crisis. The government's revenue was not enough to meet its expenditure, prices of essential goods had risen sharply, and foreign exchange reserves were very low. Imports grew rapidly without matching growth in exports. (i) What is a balance of payments crisis? (ii) Why did the Gulf War worsen the crisis? (iii) What did India do to overcome it? (5 marks)

Read the passage and answer the questions. Under liberalisation, industrial licensing was abolished for almost all except these product categories: alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals. The only industries reserved for the public sector are a part of atomic energy generation and some core activities in railway transport. (i) What was the aim of abolishing licensing? (ii) Why were some industries reserved? (iii) Give one benefit to consumers. (5 marks)

Read the passage and answer the questions. A US bank hired a call centre in Bengaluru to answer customer queries. The Indian firm employed many graduates who spoke good English. The US bank saved money because wages in India were lower. (i) What is this practice called? (ii) Give two reasons for India's attractiveness. (iii) Give one criticism of this practice. (5 marks)

Read the passage and answer the questions. The WTO was founded in 1995 as the successor organisation to GATT. Its aim is to establish a rule-based trading regime in which nations cannot place arbitrary restrictions on trade. It also aims to enlarge production and trade of services and to ensure optimum utilisation of world resources. (i) What was GATT? (ii) How does India benefit from WTO membership? (iii) Why do some economists criticise the WTO? (5 marks)

Read the passage and answer the questions. The growth of agriculture declined after the reforms. Public investment in agriculture, especially in infrastructure such as irrigation, power, roads and research, fell. The removal of fertiliser subsidies led to an increase in the cost of production. Farmers shifted from food crops to export-oriented cash crops. (i) Why did agricultural growth slow? (ii) What is the effect of shifting to cash crops? (iii) Suggest one measure to help farmers. (5 marks)

Explain the background of the economic crisis of 1991 and the measures taken under the New Economic Policy. (6 marks)

Explain liberalisation and the reforms in the industrial, financial, tax, foreign exchange and trade sectors. (6 marks)

Explain privatisation and disinvestment. Why was it adopted, and what are its benefits and problems? (6 marks)

Explain globalisation with reference to outsourcing and the WTO. How has it affected India? (6 marks)

Give an appraisal of the economic reforms since 1991 in terms of growth, employment, agriculture, industry and public finances. (6 marks)