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Question No. 30Interactive Test Mode
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Q30. Which one of the following is correct regarding stabilization and structural adjustment as two components of the new economic policy adopted in India?

Which one of the following is correct regarding stabilization and structural adjustment as two components of the new economic policy adopted in India?

Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 1996 • Indian Economy

Correct Answer: Option (B) — Structural adjustment is a gradual multi-step process, while stabilization is a quick adaptation process

Concept & Option Breakdown

Standard Reference Verified

The New Economic Policy (1991) comprised two distinct components:

  1. Stabilization measures: Short-term, immediate actions aimed at correcting the balance-of-payments crisis, controlling inflation, and rebuilding foreign exchange reserves.
  2. Structural adjustment programs: Medium-to-long term, gradual, multi-stage reforms designed to improve economic efficiency, competitiveness, and resource allocation through trade liberalization, deregulation, and privatization.
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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 1996 (Q30)
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) — Structural adjustment is a gradual multi-step process, while stabilization is a quick adaptation process

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Frequently Asked Questions — UPSC Prelims 1996 Q30

What is the official answer for UPSC Prelims 1996 GS Paper I Question 30 (Indian Economy)?

The official UPSC answer key for this 1996 Indian Economy (Indian Economic Planning & Growth) question is Option (B): "Structural adjustment is a gradual multi-step process, while stabilization is a quick adaptation process". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 1996 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?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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