MCQs – India Economic reforms and their impact
The economic reforms in India initiated in 1991 aimed to
A) Increase government control over the economy
B) Encourage privatization and liberalization
C) Expand the public sector
D) Strengthen trade barriers
Answer: B) Encourage privatization and liberalization
Which of the following sectors in India saw significant privatization and deregulation as a result of economic reforms?
A) Agriculture
B) Healthcare
C) Telecommunications
D) Education
Answer: C) Telecommunications
The introduction of the Goods and Services Tax (GST) in India aimed to:
A) Simplify the tax structure and promote ease of doing business
B) Increase tax rates to boost government revenue
C) Impose additional taxes on essential goods and services
D) Encourage tax evasion and black money
Answer: A) Simplify the tax structure and promote ease of doing business
Economic reforms in India led to an increase in:
A) Import tariffs
B) Foreign direct investment (FDI)
C) Government subsidies
D) Public sector investment
Answer: B) Foreign direct investment (FDI)
The impact of economic reforms in India includes:
A) Accelerated economic growth and modernization
B) Increased unemployment and poverty rates
C) Expansion of the informal sector and decrease in formal employment
D) Higher inflation rates and unstable currency
Answer: A) Accelerated economic growth and modernization