Indian Economy Chapter 29 Mock Test – Economic Reforms in India (30 MCQs)
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Indian Economy Chapter 29 Mock Test
Economic Reforms in India
Economic reforms in India refer to the structural changes introduced to improve the efficiency, productivity and competitiveness of the Indian economy. Before 1991, India followed a highly regulated economic system where the government controlled most industries and economic activities.
In 1991, India faced a severe balance of payments crisis due to low foreign exchange reserves and rising economic problems. To overcome this crisis, the government introduced a series of economic reforms under the leadership of Prime Minister P. V. Narasimha Rao and Finance Minister Dr. Manmohan Singh.
These reforms were based on the concept of LPG – Liberalization, Privatization and Globalization. Liberalization reduced government control over industries, privatization allowed private sector participation in public enterprises, and globalization opened the Indian economy to international trade and foreign investment.
Economic reforms significantly improved India's economic growth, increased foreign investment, boosted industrial production and strengthened India's position in the global economy. Understanding economic reforms is extremely important for competitive exams such as UPSC, SSC, CDS, Banking and State Public Service Commission examinations.
Instructions
- Total Questions: 30
- No Negative Marking
- Select the correct answer
- Click Finish Test to generate certificate