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:

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CollectorBabu · Accepted Answer

Correct Answer: 2, 3 and 4 only. ● Benefits of liberalization of economic policies in 1991 bypassed the agriculture and share of agriculture in GDP infact declined. ● Liberalization of economic policies abolished the licence raj which freed the Indian industries and it became easier to start business in the country. This increased the production and hence exports. Increased exports helped to earn foreign exchange reserves. Further, the rules were simplified which attracted FDI.

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