on October 4, 2022, 5:28 AM
NCERT Solutions for Class 12 Indian Economic Development Chapter 3 MCQ with answers and explanation for board exams 2024-25. Class 12 Economics chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal important questions and multiple choice questions are given here for practice.
Class 12 Indian Economic Development Chapter 3 MCQ Solutions
Class 12 Indian Economic Development Chapter 3 MCQ
New economic policy was introduced in the year
Tax on imports is an example of
Which one of these is a result of new industrial policy which abolished the ‘license system’
Disinvestment AND Reforms and Fiscal Policies
Disinvestment: Per annum, the govt fixes a target for withdrawal of PSEs. As an example, in 1991-92, it absolutely was targetable to mobilize 2500 crore INR through withdrawal. The govt was ready to mobilize 3,040 crores INR quite to the target. In 2017-18, the target was regarding 1,00,000 crores INR, and also the action was regarding 1,00,057 crores INR. Critics show that the assets of PSEs are undervalued and oversubscribed to the personal sector. This suggests that there has been a considerable loss to the govt and also the outright sale of public assets! Furthermore, the issues from withdrawal want to offset the shortage of state revenues instead of exploiting it for the event of PSEs and building social infrastructure within the country. Does one suppose commercialism of neighbourhood of the properties of state firms is that the best thanks to improve their efficiency?
Class 12 Indian Economic Development Chapter 3 Important Question Answers
When did India faced economic crisis? What were the measures taken to solve it.
In 1991, India met with an economic crisis relating to its external debt — the government was not able to make repayments on its borrowings from abroad; foreign exchange reserves, which we generally maintain to import petroleum and other important items, dropped to levels that were not sufficient for even a fortnight. The crisis was further compounded by rising prices of essential goods. In order to solve this crisis, India approached the International Bank for Construction and Development, referred to as IBRD or World Bank, and IMF (International Monetary Funds), and received 7 billion dollars as a loan to manage the crisis. For availing the loan, these international agencies expected India to liberalise and open up the economy by removing restrictions on the non-public sector.
What are the reforms and fiscal policies?
Economic reforms have placed limits on the expansion of public expenditure, particularly in social sectors. The tax reductions within the reform period, geared towards yielding larger revenue and curb evasion, haven’t resulted in increase in government revenue for the govt. Also, the reform policies, involving tariff reduction, have curtailed the scope for raising revenue through custom duties. So as to draw in foreign investment, tax incentives are provided to foreign investors that any reduced the scope for raising tax revenues. This features a negative impact on biological process and welfare expenditures.
What was the New Economic Policy?
The new economic policy consisted varied economic reforms. The thrust of the policies was towards creating more competitive surroundings within the economy and removing the barriers to enter and growth of the businesses. This set of policies are often classified into two groups: the stabilisation measures and the structural reform measures. Stabilisation measures are short-term measures, supposed to correct a number of the weakness that have developed within the balance of payments and to bring inflation in check. In easy words, this suggests that there was a need to maintain sufficient foreign exchange reserves and keep the rising prices under control. On the alternate hands, structural reforms measures are long-term measures, aimed towards the potency of the economy and increasing its international fight by removing the rigidities in varied segments of the Indian economy.
What is ‘Foreign Exchange Reform’?
The primary vital reform within the external sector was created within the exchange market. In 1991, as a direct measure to resolve the balance of payments crisis, the rupee was debased against foreign currencies. This junction rectifier to a rise within the influx of exchange. It additionally set the tone to free the determination of rupee worth within the exchange market from government management. Now, a lot of typically than not, markets confirm exchange rates supported the demand and supply of foreign exchange.
Define Reforms of Industry.
Industrial growth has additionally recorded a retardation. This is often attributable to decreasing demand of commercial merchandise thanks to numerous reasons like cheaper imports, inadequate investment in infrastructure etc. In an exceedingly globalised world, developing countries are compelled to open up their economies to larger flow of merchandise and capital from developed countries and rendering their industries prone to foreign goods. Cheaper imports have, thus, replaced the demand for domestic products. Domestic makers face competition from imports. The infrastructure facilities, as well as power supply, have remained inadequate thanks to lack of investment. Globalization is, thus, usually seen as making conditions for the free movement of products and services from foreign countries that adversely have an effect on the native industries and employment opportunities in developing countries. Moreover, a developing country like India still doesn’t have the access to developed countries markets attributable to high non-tariff barriers.
Reforms and Fiscal Policies
Economic reforms have placed limits on the expansion of public expenditure, particularly in social sectors. The tax reductions within the reform period, geared towards yielding larger revenue and curb evasion, haven’t resulted in increase in government revenue for the govt. Also, the reform policies, involving tariff reduction, have curtailed the scope for raising revenue through custom duties. So as to draw in foreign investment, tax incentives are provided to foreign investors that any reduced the scope for raising tax revenues. This features a negative impact on biological process and welfare expenditures.
Class 12 Indian Economics Chapter 3 Multiple Choice Questions
What is happening with the import of Chinese toys in India?
Opening the doors of the economy for foreign companies is called
Globalisation results in
Which of the following replaced MRTP act?
Outsourcing in Globalization AND Conclusion
Outsourcing: It is one of the necessary outcomes of the globalization process. In outsourcing, a company hires regular services type external sources, largely from different countries, which was previously provided internally or from within the country. As a form of economic activity, outsourcing has intensified, in recent times, due to the expansion of the quick mode of communication, particularly the growth of Information Technology (IT).
Conclusion
The process of globalisation through easement and privatisation policies has produced positive, as well as, negative results both for India and other countries. Some scholars argue that globalisation should be seen as an opportunity in terms of greater access to global markets, high technology and increased possibility of large industries of developing countries to become important players in the international arena.
On the contrary, the critics argue that the globalization is a strategy of the developed countries to expand their markets in other countries. According to them, it has compromised the welfare and identities of people belonging to poor countries. It has further been pointed out that market-driven globalization has widened the economic disparities among nations and people.
Viewed from the Indian Context
Viewed from the Indian context, some studies have expressed that the crisis that erupted in the early 1990’s was primarily an outcome of the deep-rooted inequalities in Indian society and the economic reform policies initiated as a response to the crisis by the government, with extremely advised package, further aggravated inequalities.
Further, it has increased the income and quality of consumption of solely high-income groups and the growth has been concentrated only in some select areas in the services sector such as telecommunication, information technology, finance, entertainment, travel and hospitality services, real estate and trade, instead of very important sectors such as agriculture and industry which provides livelihood to millions of people in the country.
