Which of the following genuinely happened in the Indian economy in the years following the 1991 liberalisation reforms?
1. Agriculture's share in India's GDP rose steadily.
2. India's share of exports in world trade increased.
3. Foreign Direct Investment inflows into India increased.
4. India's foreign exchange reserves grew substantially.
Select the correct answer using the code given below.

Question

Accepted Answer

B. 2, 3 and 4 only. Since 1991, India's share of exports in world trade genuinely increased, FDI inflows rose substantially as the economy opened up, and forex reserves grew from a near crisis level to a very large cushion, so statements 2, 3 and 4 are all correct. Agriculture's share in GDP, however, fell rather than rose over this period, as industry and services grew much faster, which makes statement 1 incorrect. Since three of the four statements hold, option B is correct.

Answer

A. 1, 2 and 3 only

Answer

B. 2, 3 and 4 only

Answer

C. 1, 3 and 4 only

Answer

D. 1, 2, 3 and 4