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Question No. 15Interactive Test Mode
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Q15. Which of the following has/have occurred in India after its liberalisation of economic policies in 1991? 1. The share of agriculture in GDP increased enormously. 2. The 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:

Which of the following has/have occurred in India after its liberalisation of economic policies in 1991?

  1. The share of agriculture in GDP increased enormously.
  2. The 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:
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2017 • Indian Economy

Correct Answer: Option (B) — 2, 3 and 4 only

Concept & Option Breakdown

Standard Reference Verified
  • Statement 1 is incorrect: Following the 1991 reforms, the relative share of agriculture in GDP consistently declined as industry and services expanded at a much faster pace.
  • Statement 2 is correct: India's share in world merchandise and service exports increased from around 0.5% in 1990 to over 1.8% in subsequent decades.
  • Statement 3 is correct: Liberalization of FDI caps and regulatory easing caused Foreign Direct Investment inflows to rise dramatically from under $100 million in 1990–91 to tens of billions annually.
  • Statement 4 is correct: India's foreign exchange reserves surged from a precarious $5.8 billion in 1991 to over $600 billion in recent years.
Elimination Heuristic & Exam Approach

The claim in statement 1 that the agricultural share of GDP 'increased enormously' directly contradicts standard economic development paths where the primary sector's relative GDP share declines.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2017 (Q15)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (B) — (b) 2, 3 and 4 only

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Frequently Asked Questions — UPSC Prelims 2017 Q15

What is the official answer for UPSC Prelims 2017 GS Paper I Question 15 (Indian Economy)?

The official UPSC answer key for this 2017 Indian Economy (Indian Economic Planning & Growth) question is Option (B): "(b) 2, 3 and 4 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2017 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

The claim in statement 1 that the agricultural share of GDP 'increased enormously' directly contradicts standard economic development paths where the primary sector's relative GDP share declines.

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