Question 1

Question 1: After Independence, India had adopted ____________ (a) Socialism (b) Capitalism (c) Mixed Economy (d) Communism

Accepted Answer

(c) Mixed economy

Question 2

Question 2: The new economic policy approved foreign technology in ____________ (a) Cottage industries (b) Small scale industries (c) Micro enterprises (d) High priority industries

Accepted Answer

(d) High priority industries

Question 3

Question 3: At present, the number of industries reserved for public sector has been reduced to ____________ (a) 3 (b) 5 (c) 7 (d) 2

Accepted Answer

(d) 2

Question 4

Question 1: Assertion (A): Delicensing of industries was an important step taken under liberalization. Reasoning (R): Unwanted controls and restrictions led to economic stagnation prior to 199

Accepted Answer

(c) (A) and (R) both are TRUE and (R) is the correct explanation of (A)

Question 5

Question 2: Assertion (A): In 1990-91, India faced an acute shortage of foreign exchange reserves. Reasoning (R): Import quotas and tariffs led to an increase in imports. (a) (A) is TRUE but (

Accepted Answer

(a) (A) is TRUE but (R) is FALSE

Question 6

Question 3: Assertion (A): Post liberalization, the sale of domestic goods has increased. Reasoning (R): The demand for imported goods had increased due to liberal policy. (a) (A) is TRUE but

Accepted Answer

(b) (A) is FALSE but (R) is TRUE

Question 7

Question 4: Assertion (A): Due to Globalisation, a country cannot achieve self-sufficiency in food production. Reasoning (R): Globalisation has created a revolution in the IT sector. (a) (A) i

Accepted Answer

(d) (A) and (R) both are TRUE but (R) is not the correct explanation of (A)

Question 8

Question 1: New Economic Policy – Liberalization, Privatization, Demonetization, Globalisation

Accepted Answer

Demonetization

Question 9

Question 2: Industries requiring compulsory licensing – defense equipment, agro-based industries, cigarettes, industrial explosives

Accepted Answer

agro-based industries

Question 10

Question 3: Navratna status companies – SPCL, IOC, ONGC, HPCL

Accepted Answer

SPCL

Question 11

Question 4: Liberalization dealt with the following – MRTP, FERA, SEBI, NTPC

Accepted Answer

NTPC

Question 12

Question 1: Vehicles manufactured by various automobile companies are now available in India.

Accepted Answer

Globalization. Globalization means the interaction of the domestic economy with the rest of the world with regard to foreign investment, trade, production, and financial matters.

Question 13

Question 2: Government equity in some public sector enterprises is sold to the private sector.

Accepted Answer

Disinvestment. A disinvestment is an act of selling shares of sick public sector units to the private sector. Eg. Disinvestment of Maruti, ITDC hotels, VSNL, etc.

Question 14

Question 3: Foreign investments are encouraged on a large scale in the industrial sector of India.

Accepted Answer

Foreign Direct Investment (FDI). FDI was approved under the Industrial Policy of 1991, to encourage investment in high-priority industries which require high investment and technology.

Question 15

Question 1: Liberalization has permitted the use of foreign technology.

Accepted Answer

Step-by-step solution provided.

Question 16

Question 2: The government has given private enterprises free access to the public sector.

Accepted Answer

Yes, I do agree with the statement.

Question 17

Question 3: Government has a monopoly in the insurance sector.

Accepted Answer

No, I do not agree with the statement.

Question 18

Question 4: The creation of the National Renewal Board (NRB) was done to remove poverty.

Accepted Answer

Yes, I do agree with the statement.

Question 19

Question 5: Indian Oil Corporation is one of the public sector units among ‘Navratnas’.

Accepted Answer

Yes, I do agree with the statement.

Question 20

Question 1: Explain the features of the New Economic Policy of 1991.

Accepted Answer

The process of the new economic policy started in 1985 and got momentum in 1991.

Question 21

Question 2: Explain the measures undertaken for Globalisation.

Accepted Answer

Globalization means the interaction of the domestic economy with the rest of the world with regard to foreign investment, trade, production, and financial matters.

Question 22

Question 1: Identify the reason for the low per capita consumption of ice cream in India.

Accepted Answer

In India, traditional sweets are available, which are having more than 100 varieties.

Question 23

Question 2: Explain the impact of globalisation on the Indian ice-cream industry.

Accepted Answer

Due to globalisation, multinational companies have set up a number of ice-cream parlours with a lot of varieties and flavours. It helps to attract the younger generation of today.

Question 24

Question 3: Find out the factors that could lead to the growth of the ice-cream industry in India.

Accepted Answer

In India Ice-cream industry has wider scope because there is an improvement in cold chain infrastructure, increase in disposable income, and changing lifestyle of the people.

Question 25

Question 4: Express your views about the implications of higher GST on the ice-cream industry in India.

Accepted Answer

The ice-cream sector is indirectly dependent on the primary sector. If the demand for ice cream increased then the income of cattle owners will grow. 18% GST on ice cream is high because ice cream is made from milk which is good for health as compared to tobacco, pan masala. Same GST (18%) is impose

Question 26

Question 1: What is globalisation?

Accepted Answer

Globalisation is a process of integrating the domestic economy with the rest of the world with regard to foreign investment, trade, production, and financial matters.

Question 27

Question 2: Explain the concept of disinvestment.

Accepted Answer

Disinvestment is a process of selling shares of sick Public Sector Units (PSUs) to the private sector, so as to increase the production activities of that units and to achieve efficiency in the allocation of resources, improvement in management, etc. E.g. Disinvestment of Maruti, ITDC hotels. IPCL.

Question 28

Question 3: Write the full form of FERA, SEZ, AEZ.

Accepted Answer

Step-by-step solution provided.

Question 29

Question 4: Why NRB is created?

Accepted Answer

National Renewal Board was created to look after the retrenched workers who become unemployed due to the closure of loss-making Public Sector Units (PSUs). Through this Board, the government took the responsibility of providing compensations to the retrenched workers and also to take care of those s

Question 30

Question 5: By what was FERA replaced and why?

Accepted Answer

FERA was replaced by FEMA to encourage international trade and to bring flexibility in the laws relating to foreign exchange.

Chapter 9 Economic Policy of India Since 1991 Solutions