Indian Economic Development: Liberalisation, Privatisation and Globalisation – An Appraisal · Class 12 · CBSE · Commerce Economics
Which of the following is the most balanced appraisal of the New Economic Policy of 1991?
Practice question from Indian Economic Development: Liberalisation, Privatisation and Globalisation – An Appraisal (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
hard · MCQ · Q-1C38DC
Which of the following is the most balanced appraisal of the New Economic Policy of 1991?
- A.It increased competition, foreign investment and consumer choice, but its benefits were uneven and concerns about employment and inequality remained.Correct answer
- B.It completely eliminated poverty and unemployment by transferring all economic activity to private firms.
- C.It reduced competition and foreign investment while strengthening import controls.
- D.It benefited only agriculture and had no effect on industry or services.
Solution
The reforms promoted competition, global integration, technological improvement and consumer choice. However, the gains were not equally distributed, and the reforms also raised concerns about employment, inequality, agriculture and the position of small producers.
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