Online Test — Economic Reforms Since 1991
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
The 1991 reforms were triggered mainly by a:
Balance of payments crisis
Budget surplus
War victory
Green Revolution
Explanation: A severe forex/balance of payments crisis triggered the reforms.
Question 2 of 15
In 1991 India had to borrow from the:
WTO
IMF
NITI Aayog
SEBI
Explanation: India borrowed from the IMF, which required reforms.
Question 3 of 15
LPG stands for Liberalisation, Privatisation and:
Globalisation
Planning
Protection
Production
Explanation: LPG = Liberalisation, Privatisation, Globalisation.
Question 4 of 15
Freeing the economy from unnecessary government controls is:
Liberalisation
Privatisation
Globalisation
Planning
Explanation: Reducing controls is liberalisation.
Question 5 of 15
A key industrial reform of 1991 was the abolition of:
Industrial licensing (licence raj)
All industry
The RBI
Taxes
Explanation: Industrial licensing was abolished for most industries.
Question 6 of 15
Allowing private and foreign banks was part of ____ reforms.
Financial sector
Trade
Tax
Land
Explanation: These were financial sector reforms.
Question 7 of 15
Trade reforms in 1991 included:
Cutting import tariffs and removing quotas
Raising tariffs
Banning trade
More licensing
Explanation: Tariffs were cut and import quotas largely removed.
Question 8 of 15
Giving a greater role to the private sector is:
Privatisation
Liberalisation
Globalisation
Nationalisation
Explanation: Expanding the private sector is privatisation.
Question 9 of 15
Selling a part of the government's shares in a PSU is:
Disinvestment
Licensing
A tariff
A subsidy
Explanation: Selling part of PSU shares is disinvestment.
Question 10 of 15
Greater autonomy was given to well-performing PSUs through ____ status.
Navratna
Zamindari
Licence
Buffer
Explanation: Navratna (and Maharatna/Miniratna) status gave PSUs more freedom.
Question 11 of 15
Integrating India's economy with the world economy is:
Globalisation
Import substitution
Planning
Land reform
Explanation: That integration is globalisation.
Question 12 of 15
Foreign companies getting services done in India (IT, call centres) is:
Outsourcing
Import substitution
Privatisation
Disinvestment
Explanation: This is outsourcing.
Question 13 of 15
The WTO was set up in:
1991
1995
1947
1956
Explanation: The WTO was established in 1995 (succeeding GATT).
Question 14 of 15
A success of the 1991 reforms was:
Faster economic growth
A famine
De-industrialisation
Lower reserves
Explanation: Growth accelerated after the reforms.
Question 15 of 15
A criticism of the 1991 reforms is that growth was often:
Jobless and unequal
Too equal
Negative
Only in agriculture
Explanation: Growth was often jobless with rising inequality.