UPSC Prelims 2017 · GS Paper I
Question 77: Economy and Social Development
Which of the following has/have occurred in India after its liberalization of economic policies in 1991 ?
- 1.Share of agriculture in GDP increased enormously.
- 2.Share of India’s exports in world trade increased.
- 3.FDI inflows increased.
- 4.India’s foreign exchange reserves increased enormously.
Select the correct answer using the codes given below :
AnswerUPSC’s answer is (b).
Since the 1991 reforms, the share of agriculture in GDP has fallen sharply, not risen, as industry and services grew faster, so Statement 1 is wrong. India's share in world exports rose, FDI inflows increased many times over, and foreign exchange reserves grew from a few billion dollars at the time of the 1991 crisis to hundreds of billions, so Statements 2, 3 and 4 are right. Remember: after liberalisation agriculture's share declined while exports, FDI and reserves rose.
- 1. Agriculture's share in GDP declined after 1991.
- 2. India's share in world exports increased.
- 3. FDI inflows rose.
- 4. Foreign exchange reserves rose enormously.
How you could have got this
- If you were sure statement 1 is not correct, (a) and (d) go: each of them includes 1.
What you needed to know: Agriculture's share in GDP declined after 1991.
- Then, if you were sure statement 4 is correct, (c) goes: it leaves 4 out.
What you needed to know: Foreign exchange reserves rose enormously.
Only (b) is left. You didn’t need statements 2 or 3.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Wrong: agriculture's share fell, so statement 1 is false.
- (b) Right: exports share, FDI and reserves rose after 1991.
- (c) Incomplete: foreign exchange reserves (4) also rose.
- (d) Wrong: statement 1 is false.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2017, General Studies Paper I, Series A. The paper on upsc.gov.in.