NCERT Class 11 Economics Chapter 3 Questions (MCQ, One-Word or Descriptive)
This page provides complete NCERT Class 11 Indian Economic Development Chapter 3 questions, including MCQs, one-word and descriptive questions. All questions are extracted line-by-line from NCERT for full syllabus coverage and exam preparation.
In return, India agreed to conditionalities that led to the New Economic Policy (NEP), comprising stabilisation measures (short-term) and structural reforms (long-term). The chapter systematically explains the three pillars: Liberalisation (deregulating industry, financial sector, taxes, foreign exchange, and trade), Privatisation (disinvestment of public sector undertakings and granting Maharatna/Navratna/Miniratna status to improve efficiency), and Globalisation (integrating the Indian economy with the world, including outsourcing and WTO membership).
The chapter provides an assessment of reforms over three decades. While GDP growth increased significantly (from 5.6% in 1980-91 to 9.4% in 2021-22), driven mainly by the services sector, agriculture and industry have underperformed. Public investment in agriculture declined, cheap imports hurt domestic manufacturers, and disinvestment proceeds have been used to cover revenue shortfalls rather than infrastructure.
The chapter also raises critical issues: social justice, employment generation, the Siricilla tragedy (powerloom workers’ suicides due to power tariff hikes), and the debate on whether globalisation benefits only high-income groups while widening inequalities. It concludes by presenting both opportunities (access to global markets, technology) and challenges (loss of welfare, economic disparities) of the reform process, encouraging critical thinking through “Work These Out” activities and discussion questions.
Topics Covered:
Section A: Descriptive Questions
- What was the purpose of introducing liberalisation in India? Page 41
- What were the two groups of policies under the New Economic Policy (NEP)? Page 40
- Explain the term disinvestment. Page 44
- What is globalisation? Page 45
- Define outsourcing. Page 45
- Why was the rupee devalued in 1991? Page 42
- What is the difference between stabilisation measures and structural reform measures? Page 40
- How has the agricultural sector been adversely affected by economic reforms? Page 50
- Why has the industrial sector performed poorly during the reform period? Page 50
- What are the criticisms of disinvestment in India? Page 50-51
Section B1: Objective MCQs
In which year did India meet with an economic crisis relating to external debt?
View Answer
Reference: NCERT Page 39
How long were India’s foreign exchange reserves sufficient for before the 1991 crisis?
View Answer
Reference: NCERT Page 39
Which international agencies did India approach for a loan to manage the 1991 crisis?
View Answer
Reference: NCERT Page 40
What amount of loan did India receive from World Bank and IMF in 1991?
View Answer
Reference: NCERT Page 40
Industrial licensing was abolished for all but which of the following products?
View Answer
Reference: NCERT Page 41
Which industries are still reserved for the public sector after 1991 reforms?
View Answer
Reference: NCERT Page 41
The financial sector in India is regulated by which institution?
View Answer
Reference: NCERT Page 41
Foreign investment limit in banks was raised to approximately what percentage?
View Answer
Reference: NCERT Page 42
Which tax is levied on incomes of individuals and profits of business enterprises?
View Answer
Reference: NCERT Page 42
In which year was the Indian constitution amended to introduce GST?
View Answer
Reference: NCERT Page 42
What does GST stand for?
View Answer
Reference: NCERT Page 42
Which of the following is NOT a Maharatna PSE according to Box 3.1?
View Answer
Reference: NCERT Page 44
The WTO was founded in which year?
View Answer
Reference: NCERT Page 46
GATT was established in which year?
View Answer
Reference: NCERT Page 46
India’s foreign direct investment (FDI) increased from about $100 million in 1990-91 to how much in 2022-23?
View Answer
Reference: NCERT Page 48
India’s foreign exchange reserves increased from about $6 billion in 1990-91 to about how much in 2023-24?
View Answer
Reference: NCERT Page 48
Which sector has mainly driven the GDP growth in India during the reform period?
View Answer
Reference: NCERT Page 48
According to Table 3.1, what was the GDP growth rate during 2021-22?
View Answer
Reference: NCERT Page 47
The Siricilla tragedy (Box 3.3) is associated with which sector?
View Answer
Reference: NCERT Page 51
How many powerloom workers committed suicide in Siricilla?
View Answer
Reference: NCERT Page 51
Section B2: Factual One-Liners
In which year was the New Economic Policy (NEP) announced? Page 40
Reveal Answer
What is the term for selling part of equity of PSEs to the public? Page 44
Reveal Answer
What is the full form of WTO? Page 46
Reveal Answer
What is the full form of GATT? Page 46
Reveal Answer
What is the term used for voice-based business process outsourcing? Page 45
Reveal Answer
Which PSE status is given to Indian Oil Corporation Limited? Page 44
Reveal Answer
Which PSE status is given to Hindustan Aeronautics Limited? Page 44
Reveal Answer
Which PSE status is given to Bharat Sanchar Nigam Limited? Page 44
Reveal Answer
The reduction of rupee value against foreign currencies is called? Page 42
Reveal Answer
Taxes levied on goods and services are called? Page 42
Reveal Answer
The integration of the economy with the world economy is called? Page 45
Reveal Answer
Which organisation succeeded GATT? Page 46
Reveal Answer
Name the subsidiary of ONGC engaged in oil and gas exploration in other countries (Box 3.2). Page 46
Reveal Answer
Which company established in 1907 is one of the top ten global steel companies (Box 3.2)? Page 46
Reveal Answer
The town in Andhra Pradesh where 50 powerloom workers committed suicide due to power sector reforms (Box 3.3). Page 51
Reveal Answer
Which Indian IT company has offices in 31 countries and employs about 15,000 persons abroad (Box 3.2)? Page 46