TNPSC Indian Economy – Structure of Indian Economy and Employment Generation:
Indian Economics questions are more important for the TNPSC Group 2 Prelims Exam. You will get 6 t0 8 marks from that Indian Economy portion. On this page, TNPSC Group 2, 2a, and Group 4 TNPSC Indian Economy Study Materials questions with answers are uploaded. Go through TNPSC Indian Economy Notes, Questions, and Answers below for the prelims exam.
Students who are preparing for the Group exam concentrate more on the maths part. you will easily score more marks in the Economics part. For students’ benefit, we upload TNPSC Indian Economy English and Tamil questions and answers in PDF for download. TNPSC aspirants can download and use it for the group prelims exam. kindly download TNPSC Indian Economy PDF given below:
The year 1991 is an important landmark in the economic history of post-independent India. The country went through a severe economic crisis in the form of serious Balance of Payments problem. Indian economy responded to the crisis by introducing a set of policies known as Structural Reforms. These policies were aimed at correcting the weaknesses and rigidities in the various sectors of the economy such as Industry, Trade, Fiscal, and Agriculture.
Liberalization, Privatization, and Globalization (LPG):
- The Liberalization refers to removal or relaxation of governmental restrictions in all stages in the industry.
- Delicensing, decontrol, deregulation, subsidies (incentives) and greater role for financial institutions are the various facets of liberalization.
- Privatization means the transfer of ownership and management of enterprises from the public sector to the private
sector. Denationalization, disinvestment, and opening exclusive public sector enterprises to the private sector are the gateways to privatization.
- Globalization refers to the integration of the domestic (Indian) economy with the rest of the world.
- Import liberalization through reduction of tariff and non-tariff barriers, opening the doors to Foreign Direct
- Investment (FDI) and Foreign Portfolio Investment (FPI) are some of the measures towards globalization.
Arguments infavour of LPG:
- Liberalization was necessitated because various licensing policies were said to be deterring the growth of the economy.
- Privatization was necessitated because of the belief that the private sector was not given enough opportunities to earn more money.
- Globalization was necessitated because today a developed country can grow without the help of the under developed countries.
- Natural and human resources of the developing countries are exploited by the developed countries and the developing economies are used as market for the finished goods of the developed countries.
- The surplus capital of the developed countries are invested in backward economies.
- Obsolute and outdated technologies of the developed countries can be easily sold to poor under developed countries.
- Ultimately, the rich countries can grow further at the cost of developing economies.
Arguments against LPG:
- Liberalization measures, when effectively enforced, favour an unrestricted entry of foreign companies in the domestic economy. Such an entry prevents the growth of the local manufacturers.
- Privatization measures favour the continuance of the monopoly power.
- Only the powerful people can sustain in business markets.
- Social justice cannot be easily established and maintained.
- As a result, the disparities tend to widen among people and among regions.
- As globalization measures tend to integrate all economies of the world and bringing them all under one umbrella; they pave the way for redistribution of economic power at the world level.
- Only the already well-developed countries are favoured in this process and the welfare of the less- developed countries will be neglected.
- The economic crisis of the developed countries are easily spread to the developing economies through trade.
The following are the major changes after 1991:
1. Foreign exchange reserves started rising.
2. There was rapid industrialization.
3. The pattern of consumption started improving (or deteriorating).
4. Infrastructure facilities such as express highways, metro rails, flyovers, and airports started expanding (but the local people were thrown away).
Structure of Indian Economy and Employment Generation Questions & Answers:
1. Which of the following is the way of Privatisation?
a. Disinvestment b. Denationalization c. Franchising d. All the above
2. Countries today are to be _____ for their growth.
a. Dependent b. Interdependent c. Free trade d. Capitalist
3. The Arguments against LPG is _________
a. Economic growth b. More investment c. Disparities among people and regions d. Modernization
4. Expansion of FDI ____________
a. Foreign Private Investment b. Foreign Portfolio c. Foreign Direct Investment d. Forex Private Investment
5. India is the largest producer of ___________ in the world.
a. fruits b. gold c. petrol d. diesel
6. Foreign investment includes__________
a. FDI only b. FPI and FFI c. FDI and FPI d. FDI and FFI
7. The Special Economic Zones policy was announced in ___________
a. April 2000 b. July 1990 c. April 1980 d. July 1970
8. Agricultural Produce Market Committee is a ___________
a. Advisory body b. Statutory body c. Both a and b d. non of these above
9. Goods and Services Tax is _______________
a. a multi point tax b. having cascading effects c. like Value Added Tax d. a single point tax with no cascading effects.
10. The New Foreign Trade Policy was announced in the year_____________
a. 2000 b. 2002 c. 2010 d. 2015
11. Financial Sector reforms mainly related to _______________
a. Insurance Sector b. Banking Sector c. Both a and b d. Transport Sector
12. The Goods and Services Tax Act came in to effect on ________
a. 1st July 2017 b. 1st July 2016 c. 1st January 2017 d. 1st January 2016
13. The new economic policy is concerned with the following
a. foreign investment b. foreign technology c. foreign trade d. all the above
14. The recommendation of Narashimham Committee Report was submitted in the year________
a. 1990 b. 1991 c. 1995 d. 2000
15. The farmers have access to credit under Kisan credit card scheme through the following except
a. co-operative banks b. RRBs c. Public sector banks d. private banks\
16. The Raja Chelliah Committee on Trade Policy Reforms suggested the peak rate on import duties at
a. 25% b. 50% c. 60% d. 100%
17. The first ever SEZ in India was set up at
a. Mumbai b. Chennai c. Kandla d. Cochin
18. ‘The Hindu Rate of Growth’ coined by Raj Krishna refers to
a. low rate of economic growth b. high proportion of Hindu population c. Stable GDP d. none
19. The highest rate of tax under GST is ___________ (as on July1, 2017)
a. 18% b. 24% c. 28% d. 32%
20. The transfer of ownership from the public sector to the private sector is known as _____.
a. Globalization b. Liberalization c. Privatization d. Nationalization