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CodeVID-M12-WS
Economic Reforms Since 1991 — Practice Worksheet
Chapter: Economic Reforms Since 1991
Topic: Economic Reforms Since 1991
Maximum Marks: 35
Time: 30 minutes
Name: ____________________ Roll No.: __________ Date: ____________

General Instructions

  • All questions are compulsory.
  • Choose the correct option (A, B, C or D) for each question.
  • The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each) 15 × 1 = 15 marks
1.
The 1991 reforms were triggered mainly by a:
  • A.Balance of payments crisis
  • B.Budget surplus
  • C.War victory
  • D.Green Revolution
2.
In 1991 India had to borrow from the:
  • A.WTO
  • B.IMF
  • C.NITI Aayog
  • D.SEBI
3.
LPG stands for Liberalisation, Privatisation and:
  • A.Globalisation
  • B.Planning
  • C.Protection
  • D.Production
4.
Freeing the economy from unnecessary government controls is:
  • A.Liberalisation
  • B.Privatisation
  • C.Globalisation
  • D.Planning
5.
A key industrial reform of 1991 was the abolition of:
  • A.Industrial licensing (licence raj)
  • B.All industry
  • C.The RBI
  • D.Taxes
6.
Allowing private and foreign banks was part of ____ reforms.
  • A.Financial sector
  • B.Trade
  • C.Tax
  • D.Land
7.
Trade reforms in 1991 included:
  • A.Cutting import tariffs and removing quotas
  • B.Raising tariffs
  • C.Banning trade
  • D.More licensing
8.
Giving a greater role to the private sector is:
  • A.Privatisation
  • B.Liberalisation
  • C.Globalisation
  • D.Nationalisation
9.
Selling a part of the government's shares in a PSU is:
  • A.Disinvestment
  • B.Licensing
  • C.A tariff
  • D.A subsidy
10.
Greater autonomy was given to well-performing PSUs through ____ status.
  • A.Navratna
  • B.Zamindari
  • C.Licence
  • D.Buffer
11.
Integrating India's economy with the world economy is:
  • A.Globalisation
  • B.Import substitution
  • C.Planning
  • D.Land reform
12.
Foreign companies getting services done in India (IT, call centres) is:
  • A.Outsourcing
  • B.Import substitution
  • C.Privatisation
  • D.Disinvestment
13.
The WTO was set up in:
  • A.1991
  • B.1995
  • C.1947
  • D.1956
14.
A success of the 1991 reforms was:
  • A.Faster economic growth
  • B.A famine
  • C.De-industrialisation
  • D.Lower reserves
15.
A criticism of the 1991 reforms is that growth was often:
  • A.Jobless and unequal
  • B.Too equal
  • C.Negative
  • D.Only in agriculture
Section B — Challenge / Olympiad (2 marks each) 10 × 2 = 20 marks
16.
India's foreign exchange reserves falling to barely two weeks of imports in 1991 meant the country could not:
  • A.Pay for its essential imports
  • B.Collect taxes
  • C.Hold elections
  • D.Grow food
17.
Ending the licence raj was meant to raise efficiency by exposing firms to:
  • A.Competition and freer entry
  • B.More red tape
  • C.Higher tariffs
  • D.State ownership
18.
Outsourcing made India a global hub largely because it offered:
  • A.Skilled English-speaking labour at lower cost
  • B.No internet
  • C.High wages
  • D.Closed markets
19.
Disinvestment serves two goals at once: raising money for the government and:
  • A.Improving the efficiency of public enterprises
  • B.Closing all firms
  • C.Raising tariffs
  • D.Ending trade
20.
Critics call post-1991 growth 'jobless' because output rose faster than:
  • A.Employment
  • B.Prices
  • C.Exports
  • D.Reserves
21.
As a WTO member, India both gains market access and must:
  • A.Negotiate to protect its farmers and small industries
  • B.Ban all imports
  • C.Leave the GATT
  • D.Stop exporting
22.
A common criticism is that the reforms relatively neglected ____, which still employs most Indians.
  • A.Agriculture
  • B.The IT sector
  • C.Banking
  • D.Telecom
23.
Tax reforms aimed to encourage compliance and investment mainly by:
  • A.Reducing and simplifying tax rates
  • B.Raising all taxes
  • C.Abolishing taxes
  • D.Hiding tax rules
24.
India chose a gradual, partial privatisation (mainly disinvestment) partly out of concern for:
  • A.Job losses and selling national assets too cheaply
  • B.Too much efficiency
  • C.Higher reserves
  • D.Lower growth
25.
Overall, 1991 marks a turning point because India shifted from a ____ economy to a ____ one.
  • A.Closed, slow-growing; open, fast-growing
  • B.Open; closed
  • C.Rich; poor
  • D.Industrial; agricultural

Answer Key

Section A — Multiple Choice (1 mark each)
  1. (A) Balance of payments crisis
  2. (B) IMF
  3. (A) Globalisation
  4. (A) Liberalisation
  5. (A) Industrial licensing (licence raj)
  6. (A) Financial sector
  7. (A) Cutting import tariffs and removing quotas
  8. (A) Privatisation
  9. (A) Disinvestment
  10. (A) Navratna
  11. (A) Globalisation
  12. (A) Outsourcing
  13. (B) 1995
  14. (A) Faster economic growth
  15. (A) Jobless and unequal
Section B — Challenge / Olympiad (2 marks each)
  1. (A) Pay for its essential imports
  2. (A) Competition and freer entry
  3. (A) Skilled English-speaking labour at lower cost
  4. (A) Improving the efficiency of public enterprises
  5. (A) Employment
  6. (A) Negotiate to protect its farmers and small industries
  7. (A) Agriculture
  8. (A) Reducing and simplifying tax rates
  9. (A) Job losses and selling national assets too cheaply
  10. (A) Closed, slow-growing; open, fast-growing
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