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 :
Explanation
Option (b) is correct because the 1991 LPG (Liberalization, Privatization, and Globalization) reforms integrated India into the global market, leading to a significant rise in FDI inflows, an increased share of Indian exports in world trade, and a massive accumulation of foreign exchange reserves. Statement 1 is incorrect because the share of agriculture in India's GDP has steadily declined from approximately 30% in 1991 to below 20% today as the services and industrial sectors grew faster. The core concept being tested is the structural transformation and macroeconomic impact of the New Economic Policy on the Indian economy.