The 50 Most Important Economics GK Questions on the Economic Reforms Since 1991, along with their answers, are collected in this post. For candidates preparing for the UPSC, SSC, Railway, CDS, NDA, State PSCs, and other government examinations, these questions are perfect. Knowing these facts not only improves your static GK but also gives you an advantage in terms of macroeconomics, microeconomics, their jargon, and the fundamentals that underpin the nation’s economic policies.
Multiple-Choice Question (50 GK Questions With Answers)
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1. Economic reforms in India were introduced in:
a) 1980
b) 1991
c) 2000
d) 1975
2. The main reason for reforms in 1991 was:
a) High FDI inflows
b) Surplus exports
c) Balance of payments crisis
d) Growth of agriculture
3. In 1991, India’s foreign exchange reserves were enough for:
a) 6 months
b) 1 year
c) 2 weeks
d) 3 months
4. India borrowed $7 billion during the crisis from:
a) Asian Development Bank
b) World Bank & IMF
c) WTO
d) BRICS Bank
5. The New Economic Policy (NEP) of 1991 focused on:
a) Green Revolution
b) Social welfare
c) Liberalisation, Privatisation, Globalisation
d) Land reforms
6. Stabilisation measures are:
a) Short-term measures to control inflation & restore balance
b) Long-term reforms
c) Policies for industry
d) Agricultural schemes
7. Structural reforms aim to:
a) Reduce literacy
b) Increase efficiency and competitiveness
c) Control population
d) Boost defence
8. Which sectors were freed from licensing in 1991?
a) Most industries except hazardous and defence-linked
b) All sectors
c) Agriculture only
d) Banking only
9. Industrial licensing is still needed for:
a) Cement
b) Alcohol & hazardous chemicals
c) Food grains
d) Automobiles
10. Which sectors remain reserved for public sector post-1991?
a) Cotton mills
b) Steel industry
c) Atomic energy & railways (core activities)
d) Fertiliser
11. Which body regulates India’s financial sector?
a) SEBI
b) Finance Ministry
c) RBI
d) NITI Aayog
12. One aim of financial sector reforms was to make RBI a:
a) Borrower
b) Facilitator
c) Regulator only
d) Investor
13. Foreign investment in banks was raised up to:
a) 51%
b) 100%
c) 74%
d) 60%
14. FIIs include:
a) Farmers
b) Mutual funds, pension funds, merchant bankers
c) Gram panchayats
d) Only SEBI
15. Tax reforms since 1991 aimed to:
a) Increase evasion
b) Raise tariffs
c) Lower rates and simplify system
d) End GST
16. GST was introduced in India in:
a) 2014
b) 2017
c) 2010
d) 2005
17. GST stands for:
a) General Service Tax
b) Goods and Services Tax
c) Government Sales Tax
d) Growth & Service Tariff
18. In 1991, the rupee was:
a) Pegged to gold
b) Devalued
c) Appreciated
d) Linked to dollar
19. Devaluation of rupee aimed to:
a) Reduce exports
b) Boost exports & increase forex inflow
c) Lower imports
d) Fix interest rates
20. Trade policy reforms reduced:
a) FDI inflows
b) Tariffs & quantitative restrictions
c) Service exports
d) Agricultural output
21. Import licensing was abolished except for:
a) Automobiles
b) Hazardous and sensitive goods
c) Textiles
d) Fertilisers
22. Export duties were:
a) Raised
b) Removed
c) Doubled
d) Restricted
23. Privatisation means:
a) New industries only
b) Shifting ownership/management from public to private
c) More subsidies
d) Licensing
24. Disinvestment refers to:
a) Buying PSEs
b) Government selling shares in PSUs
c) Expanding PSEs
d) Nationalisation
25. Which status gives autonomy to top-performing PSUs?
a) Maharatna, Navratna, Miniratna
b) Gold & Silver
c) Bluechip
d) National Navya
26. Example of a Maharatna PSU:
a) HCL
b) Infosys
c) Indian Oil Corporation
d) Airtel
27. Example of a Navratna:
a) LIC
b) HAL (Hindustan Aeronautics Limited)
c) BSNL
d) ONGC
28. Example of a Miniratna:
a) Wipro
b) Airport Authority of India
c) ITC
d) Maruti
29. Privatisation helps in:
a) Improving efficiency & bringing private capital
b) Boosting subsidies
c) Expanding bureaucracy
d) Avoiding FDI
30. Globalisation means:
a) Local trade
b) Integration of economy with world
c) Only agriculture exports
d) Isolated growth
31. Outsourcing means:
a) Hiring Indian workers only
b) Hiring external/global services for work
c) Exporting raw material
d) Buying land abroad
32. India is a top outsourcing hub due to:
a) High wages
b) No IT sector
c) Cheap skilled labour & IT growth
d) Lack of jobs
33. WTO replaced GATT in:
a) 1991
b) 2000
c) 1995
d) 1980
34. WTO ensures:
a) Trade quotas
b) Rule-based global trade
c) Protectionism
d) Nationalisation
35. India joined WTO as:
a) Associate member
b) Founding member
c) Observer
d) Later entrant
36. In reforms, agriculture faced problems due to:
a) High subsidies
b) Decline in public investment
c) Abundant irrigation
d) Price stability
37. Fertiliser subsidy reduction caused:
a) Cheaper inputs
b) Higher production cost for farmers
c) Free fertilisers
d) Stable farm prices
38. Industry post-reforms slowed due to:
a) Massive subsidies
b) Cheaper imports & poor infrastructure
c) Labour strikes
d) Over-production
39. Which sector grew fastest after 1991?
a) Agriculture
b) Services
c) Industry
d) Defence
40. India’s FDI rose from $100 million in 1990–91 to about in 2017–18:
a) $5 billion
b) $30 billion
c) $50 billion
d) $100 billion
41. Forex reserves grew from $6 billion in 1991 to about in 2018–19:
a) $100 bn
b) $413 bn
c) $200 bn
d) $500 bn
42. Major export sectors post-1991 include:
a) IT, pharmaceuticals, auto parts, textiles
b) Coal, rice, jute
c) Defence equipment
d) Fertilisers
43. Reforms have been criticised for:
a) Too much agriculture focus
b) Low employment generation
c) Free electricity
d) Industrial dominance
44. Agriculture post-reforms shifted towards:
a) Wheat & rice
b) Cash crops for export
c) Pulses
d) Subsistence farming
45. Industrial slowdown also occurred due to:
a) Competition from imports
b) Large subsidies
c) Rising wages
d) Abundant power
46. Power tariff reforms hurt small industries in:
a) Gujarat
b) Andhra Pradesh (Siricilla tragedy)
c) Punjab
d) Kerala
47. Disinvestment target in 1991–92 was ₹2500 crore; achieved was:
a) ₹2000 crore
b) ₹3040 crore
c) ₹1000 crore
d) ₹5000 crore
48. Disinvestment critics argue PSUs were:
a) Overvalued
b) Undervalued and sold cheap
c) Expanded globally
d) Nationalised
49. Critics of reforms say benefits went mainly to:
a) Farmers
b) High-income groups & select services sector
c) Rural poor
d) Small industries
50. Positive outcome of reforms is:
a) High growth in services, IT exports, forex reserves
b) Decline in GDP
c) Industrial monopoly
d) Fall in reserves
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Answer Key
| Q.No | Answer Key | Q.No | Answer Key |
| 1 | b. 1991 | 26 | c. Indian Oil Corporation |
| 2 | c. Balance of payments crisis | 27 | b. HAL (Hindustan Aeronautics Limited) |
| 3 | c. 2 weeks | 28 | b. Airport Authority of India |
| 4 | b. World Bank & IMF | 29 | a. Improving efficiency & bringing private capital |
| 5 | c. Liberalisation, Privatisation, Globalisation | 30 | b. Integration of economy with world |
| 6 | a. Short-term measures to control inflation & restore balance | 31 | b. Hiring external/global services for work |
| 7 | b. Increase efficiency and competitiveness | 32 | c. Cheap skilled labour & IT growth |
| 8 | a. Most industries except hazardous and defence-linked | 33 | c. 1995 |
| 9 | b. Alcohol & hazardous chemicals | 34 | c. Rule-based global trade |
| 10 | c. Atomic energy & railways (core activities) | 35 | b. Founding member |
| 11 | c. RBI | 36 | b. Decline in public investment |
| 12 | b. Facilitator | 37 | b. Higher production cost for farmers |
| 13 | c. 74% | 38 | b. Cheaper imports & poor infrastructure |
| 14 | b. Mutual funds, pension funds, merchant bankers | 39 | b. Services |
| 15 | c. Lower rates and simplify system | 40 | b. $30 billion |
| 16 | b. 2017 | 41 | b. $413 bn |
| 17 | b. Goods and Services Tax | 42 | a. IT, pharmaceuticals, auto parts, textiles |
| 18 | b. Devalued | 43 | b. Low employment generation |
| 19 | b. Boost exports & increase forex inflow | 44 | b. Cash crops for export |
| 20 | b. Tariffs & quantitative restrictions | 45 | a. Competition from imports |
| 21 | b. Hazardous and sensitive goods | 46 | b. Andhra Pradesh (Siricilla tragedy) |
| 22 | b. Removed | 47 | b. ₹3040 crore |
| 23 | b. Shifting ownership/management from public to private | 48 | b. Undervalued and sold cheap |
| 24 | b. Government selling shares in PSUs | 49 | b. High-income groups & select services sector |
| 25 | a. Maharatna, Navratna, Miniratna | 50 | a. High growth in services, IT exports, forex reserves |
Tips for Aspirants – Why These GK Questions Matter
Economics GK is essential if you want to take tests for the UPSC, SSC, Railways, or other State Public Service Commissions. Exam questions from “Economic Reforms Since 1991” are often repeated because they provide a rational perspective on microeconomics, macroeconomics, their jargon, and the fundamental ideas that underpin the nation’s economic policies.
🟢 These GK questions with answers help in:
- Strengthening your static GK base
- Quick revision of conceptual theories
- Differentiating between similar-sounding options
- Retaining chronological facts like Microeconomics, Macroeconomics terminologies and major events ( Post Colonial Economic situation of the country )
Pro Tip: Revise these questions multiple times, focus on keywords (like industry, exploitation, scarcity, trade practices, indebtedness etc. ), and try linking each theory to a scientist’s name—it helps in elimination strategy!
Conclusion
We hope you found this collection of 50 MCQs on Economic Reforms Since 1991 will be helpful in your exam preparation. Economics isn’t just about memorizing terms and time periods—it’s about understanding how our economy came to be in its present state and how it continues to change.
👉 Stay tuned for Economics GK Part-4
✍️ For more GK questions with answers, visit our dedicated 👉 GK Section.
