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.
In which year did India meet with an economic crisis relating to external debt?
How long were India’s foreign exchange reserves sufficient for before the 1991 crisis?
Which international agencies did India approach for a loan to manage the 1991 crisis?
What amount of loan did India receive from World Bank and IMF in 1991?
Industrial licensing was abolished for all but which of the following products?
Which industries are still reserved for the public sector after 1991 reforms?
The financial sector in India is regulated by which institution?
Foreign investment limit in banks was raised to approximately what percentage?
Which tax is levied on incomes of individuals and profits of business enterprises?
In which year was the Indian constitution amended to introduce GST?
What does GST stand for?
Which of the following is NOT a Maharatna PSE according to Box 3.1?
The WTO was founded in which year?
GATT was established in which year?
India’s foreign direct investment (FDI) increased from about $100 million in 1990-91 to how much in 2022-23?
India’s foreign exchange reserves increased from about $6 billion in 1990-91 to about how much in 2023-24?
Which sector has mainly driven the GDP growth in India during the reform period?
According to Table 3.1, what was the GDP growth rate during 2021-22?
The Siricilla tragedy (Box 3.3) is associated with which sector?
How many powerloom workers committed suicide in Siricilla?
In which year was the New Economic Policy (NEP) announced? Page 40
What is the term for selling part of equity of PSEs to the public? Page 44
What is the full form of WTO? Page 46
What is the full form of GATT? Page 46
What is the term used for voice-based business process outsourcing? Page 45
Which PSE status is given to Indian Oil Corporation Limited? Page 44
Which PSE status is given to Hindustan Aeronautics Limited? Page 44
Which PSE status is given to Bharat Sanchar Nigam Limited? Page 44
The reduction of rupee value against foreign currencies is called? Page 42
Taxes levied on goods and services are called? Page 42
The integration of the economy with the world economy is called? Page 45
Which organisation succeeded GATT? Page 46
Name the subsidiary of ONGC engaged in oil and gas exploration in other countries (Box 3.2). Page 46
Which company established in 1907 is one of the top ten global steel companies (Box 3.2)? Page 46
The town in Andhra Pradesh where 50 powerloom workers committed suicide due to power sector reforms (Box 3.3). Page 51
Which Indian IT company has offices in 31 countries and employs about 15,000 persons abroad (Box 3.2)? Page 46
This post was last modified on May 5, 2026 9:41 pm