Indian Economy Mock Test: New Economic Reforms & NITI Aayog for UPSC/PSC Exams
Result:
1
When did India launch its new economic reforms in response to a severe Balance of Payment (BoP) crisis?
Explanation: The provided data states that on July 23, 1991, India launched a comprehensive process of economic reforms in response to a severe fiscal and Balance of Payment (BoP) crisis.
2
What does the 'L' in the LPG framework of Indian economic reforms stand for?
Explanation: The text specifies that the reform process in India is popularly known by the acronym LPG, which stands for Liberalisation, Privatisation, and Globalisation. 'L' stands for Liberalisation.
3
To manage the 1991 economic crisis, India had to accept conditionalities from which international body?
Explanation: To secure external currency support, India had to agree to certain conditionalities from the International Monetary Fund (IMF) under its Extended Fund Facility (EFF) program.
4
What was the slogan of the Sixth Five-Year Plan (1980–85)?
Explanation: The data explicitly mentions that the slogan of the Sixth Five-Year Plan was ‘Garibi Hatao’ (alleviate poverty).
5
Which institution was established on January 1, 2015, to replace the Planning Commission?
Explanation: The NITI (National Institution for Transforming India) Aayog was established on January 1, 2015, replacing the 65-year-old Planning Commission.
6
Who serves as the ex-officio Chairperson of the NITI Aayog?
Explanation: The structure of NITI Aayog includes the Prime Minister of India as its Chairperson.
7
Who is the author of the 1934 book "The Planned Economy of India"?
Explanation: The text states that engineer and former Dewan of Mysore, M. Visvesvaraya, published "The Planned Economy of India" in 1934.
8
In 1944-45, a plan for India's development was prepared by eight leading Indian capitalists. What was this plan called?
Explanation: The Bombay Plan (1944-45) was prepared by eight leading Indian capitalists, including J.R.D. Tata and G.D. Birla.
9
In the context of India's economic reforms, what does the term "disinvestment" refer to?
Explanation: Privatisation can occur through disinvestment, which is defined in the text as the selling of shares of state-owned enterprises.
10
The economic reforms program launched by India consisted of two main components. What were they?
Explanation: The text explicitly states that the reform program India launched had two main components: Macroeconomic Stabilisation Measures and Structural Reform Measures.
11
The First Generation of economic reforms in India is considered to have spanned which period?
Explanation: The First Generation Reforms are dated from 1991-2000 in the provided text.
12
The Third Generation of economic reforms, which committed to making Panchayati Raj Institutions (PRIs) fully functional, was announced along with which Five-Year Plan?
Explanation: The text specifies that the Third Generation Reforms were announced with the Tenth Plan (2002-07).
13
What is the full form of NITI in NITI Aayog?
Explanation: The full form of NITI is National Institution for Transforming India.
14
In which year was the National Planning Committee (NPC) established under the chairmanship of Jawaharlal Nehru?
Explanation: The Congress Plan, initiated in 1938, led to the establishment of the National Planning Committee (NPC) under Jawaharlal Nehru.
15
What does the guiding principle of 'Antyodaya' for NITI Aayog signify?
Explanation: Antyodaya, as a guiding principle for NITI Aayog, means the upliftment of the poor.
16
The "Washington Consensus" advocated for what kind of role for the government in the economy?
Explanation: The Washington Consensus, emerging in the early 1980s, advocated for a minimal role for the government, promoting privatization and liberalization.
17
India's reform approach has often been described as 'gradualist' in contrast to what other approach seen in some countries?
Explanation: The text highlights that India's reform program is distinguished by its emphasis on a gradual and evolutionary transition, in contrast to the "shock therapy" or rapid restructuring.
18
What was the slogan for the Twelfth Five-Year Plan (2012-17)?
Explanation: The Twelfth Plan (2012–17) carried the slogan "Faster, Sustainable and More Inclusive Growth".
19
When was the National Development Council (NDC) established to ensure cooperation of states in plan implementation?
Explanation: The NDC was established in August 1952 to ensure the cooperation of states in the implementation of the plans.
20
How does the World Trade Organisation (WTO) officially define globalisation?
Explanation: The text defines globalisation as an increase in economic integration among nations, leading to "unrestricted cross border movements of goods and services, capital and the labour force", as sponsored by the WTO.
21
As part of the IMF conditionalities in 1991, by what percentage was the Indian rupee to be devalued?
Explanation: One of the key IMF conditions was the devaluation of the rupee by 22%.
22
The Gandhian Plan of 1944, formulated by Sriman Narayan Agarwal, placed the most emphasis on which sector?
Explanation: The Gandhian Plan emphasized agriculture, cottage industries, and a decentralized economic structure.
23
Which body within NITI Aayog is composed of the Chief Ministers of all States and the Lt. Governors of Union Territories?
Explanation: The structure of NITI Aayog includes a Governing Council comprising the Chief Ministers of all States and Lt. Governors of Union Territories.
24
What is the term for a type of planning where all economic decisions are centralized and enforced by the state?
Explanation: The text defines Imperative Planning as a planning process followed by state economies where all economic decisions are centralized.
25
The Second Generation of economic reforms in India (2000-01 onwards) emphasized the dismantling of which mechanism?
Explanation: A key component of the Second Generation Reforms was Factor Market Reforms, which included dismantling the Administered Price Mechanism (APM).
26
The People's Plan of 1945, which advocated for providing people with "basic necessities of life", was based on which ideology?
Explanation: The People's Plan, drafted by M.N. Roy, was based on Marxist socialism.
27
In the LPG framework of Indian economic reforms, what does 'G' stand for?
Explanation: The acronym LPG stands for Liberalisation, Privatisation, and Globalisation. 'G' stands for Globalisation.
28
In which year was the Planning Commission of India established by a Cabinet Resolution?
Explanation: The Planning Commission was established by a Cabinet Resolution in March 1950.
29
The concept of "inclusive growth" was a central theme for which Five-Year Plan?
Explanation: The Eleventh Plan (2007-12) had "inclusive growth" as its central theme. The Third Generation reforms, linked to the Tenth plan, formally moved towards this, but it became the central theme in the Eleventh.
30
The Sarvodaya Plan of 1950 was formulated by which socialist leader, inspired by Gandhian techniques?
Explanation: The Sarvodaya Plan (1950) was published by socialist leader Jayaprakash Narayan.
31
In the First Five-Year Plan (1951-56), which sector was given the highest priority to tackle food shortages?
Explanation: The First Plan (1951–56) prioritized agriculture, irrigation, and power projects to tackle the prevailing food shortages.
32
The Eighth Five-Year Plan (1992-97) was the first plan to be launched after which significant event?
Explanation: The Eighth Plan (1992–97) was launched after the 1991 economic reforms and marked a shift in planning strategy.
33
What does the principle of "Cooperative Federalism" signify in the context of NITI Aayog's functions?
Explanation: NITI Aayog aims to foster Cooperative Federalism, which means acting as a platform to bring states together and build a strong nation with states as equal partners.
34
The unofficial "Fourth Generation" of reforms, coined by experts in 2002, envisions an India that is fully ___________.
Explanation: The text mentions that the unofficial Fourth Generation Reforms refer to the vision of a fully "information technology-enabled" India.
35
In the Indian context, the term 'economic reform' has consistently signified a move towards which type of economy?
Explanation: Liberalisation, the direction of reform, signifies a move away from a state-controlled or planned economy towards a free-market or capitalistic economy.
36
The "Washington Consensus" was a strategy advocated by which set of global institutions?
Explanation: The name "Washington Consensus" originated because the strategy was advocated by the IMF, the World Bank, and the US Treasury, all based in Washington D.C.
37
What type of planning is typically followed in a mixed economy, where the government encourages or discourages the private sector through policies rather than direct commands?
Explanation: The Eighth Plan (1992-97) marked a shift towards indicative planning, which is characteristic of a mixed economy where the state's role is to guide, not command, the market.
38
The NITI Aayog is designed to act as a 'catalyst' and transition the government's role from a 'provider' to what?
Explanation: NITI Aayog was envisioned as a catalyst that would nurture an enabling environment, shifting the government's role to an 'enabler'.
39
What was a major criticism directed at the Planning Commission's operational nature?
Explanation: The text mentions that the Planning Commission grew into a powerful body and was often described as the 'economic Cabinet', implying a centralized nature, which was a point of criticism leading to its replacement. The move to NITI Aayog emphasized decentralized planning.
40
What does the acronym MPLADS stand for?
Explanation: The full form of MPLADS is Member of Parliament Local Area Development Scheme.
41
Which 1991 event in the Middle East significantly worsened India's Balance of Payment crisis?
Explanation: The text states that the 1991 crisis was exacerbated by the first Gulf War, which caused a spike in oil prices and a drop in remittances.
42
In the LPG framework, what does 'P' represent?
Explanation: The acronym LPG stands for Liberalisation, Privatisation, and Globalisation. 'P' stands for Privatisation.
43
In which year did the government announce that agriculture would be made the prime moving force of the economy?
Explanation: The text mentions that in 2002, the government announced that agriculture would become the prime moving force of the economy, as part of the Second Generation Reforms focus on critical areas.
44
Who was the chairman of the National Planning Committee set up by the Indian National Congress in 1938?
Explanation: The National Planning Committee (NPC) was established in 1938 under the chairmanship of Jawaharlal Nehru.
45
The Development Monitoring and Evaluation Office (DMEO) is an attached office operating under which institution?
Explanation: The Development Monitoring and Evaluation Office (DMEO) is an attached office under NITI Aayog, responsible for monitoring and evaluation functions.
46
What is the term used to describe the planning process that is structured from the bottom-up, beginning at the village level?
Explanation: NITI Aayog is mandated to restructure the planning process from the bottom-up, empowering villages to formulate their own plans. This is known as Decentralised Planning.
47
What was a key reform in the external sector during the First Generation of reforms (1991-2000)?
Explanation: External Sector Reforms during the First Generation included switching to a floating exchange rate and allowing foreign investment.
48
The concept of an Independent Evaluation Office (IEO) in India was modeled on a similar institution in which country?
Explanation: The data explicitly mentions that the Independent Evaluation Office (IEO) was modeled on the lines of a similar institution in Mexico.
49
Which Five-Year Plan specifically focused on poverty alleviation (Garibi Hatao) and self-reliance?
Explanation: The Fifth Plan (1974–79) had its focus on poverty alleviation and self-reliance. While the slogan 'Garibi Hatao' was associated with this era and the subsequent plan, the focus was central to the Fifth Plan.
50
Through what mechanism does NITI Aayog aim to mainstream external ideas into government policies?
Explanation: NITI Aayog aims to mainstream external ideas into government policies and programs through a collaborative community of national and international experts, practitioners, and other partners.
51
Consider the following statements regarding the economic reforms initiated in India in 1991:
1. The reforms were voluntary and a result of a long-term strategic shift.
2. The approach adopted was that of "shock therapy" for rapid restructuring.
3. The reforms were an obligatory response to a severe Balance of Payment crisis.
Which of the above statements is/are correct?
1. The reforms were voluntary and a result of a long-term strategic shift.
2. The approach adopted was that of "shock therapy" for rapid restructuring.
3. The reforms were an obligatory response to a severe Balance of Payment crisis.
Which of the above statements is/are correct?
Explanation: The text clearly states that India's reforms were not voluntary but were an obligatory response to the BoP crisis. It also contrasts India's gradual approach with the "shock therapy" model. Therefore, only statement 3 is correct.
52
Which of the following were key conditionalities imposed by the IMF on India in 1991?
1. Devaluation of the rupee by 22%.
2. A 20% cut in excise duties.
3. Drastic reduction in the peak import tariff from 130% to 30%.
4. An annual 10% increase in all government expenditures.
Select the correct answer using the code given below.
1. Devaluation of the rupee by 22%.
2. A 20% cut in excise duties.
3. Drastic reduction in the peak import tariff from 130% to 30%.
4. An annual 10% increase in all government expenditures.
Select the correct answer using the code given below.
Explanation: The text specifies the conditions were: 22% devaluation of the rupee, reduction of import tariff from 130% to 30%, a 20% HIKE (not cut) in excise duties, and a 10% CUT (not increase) in government expenditures. Thus, only statements 1 and 3 are correct.
53
Match the following components of the LPG framework with their correct description:
Select the correct code:
| Component | Description |
|---|---|
| (a) Liberalisation | 1. The ultimate goal, focusing on economic integration among nations. |
| (b) Privatisation | 2. The path of reform, involving transfer of state assets to the private sector. |
| (c) Globalisation | 3. The direction of reform, moving towards a free-market economy. |
Select the correct code:
Explanation: The text defines Liberalisation as the direction of reform (towards a market economy), Privatisation as the path (transfer of assets), and Globalisation as the ultimate goal (economic integration). Therefore, the correct match is a-3, b-2, c-1.
54
Arrange the following "Generations of Economic Reforms" in India in chronological order:
1. Reforms focusing on making Panchayati Raj Institutions (PRIs) fully functional.
2. Reforms focusing on de-reservation of industries and external sector reforms.
3. Reforms focusing on Factor Market Reforms and dismantling the APM.
Select the correct answer using the code given below.
1. Reforms focusing on making Panchayati Raj Institutions (PRIs) fully functional.
2. Reforms focusing on de-reservation of industries and external sector reforms.
3. Reforms focusing on Factor Market Reforms and dismantling the APM.
Select the correct answer using the code given below.
Explanation: Statement 2 describes the First Generation Reforms (1991-2000). Statement 3 describes the Second Generation Reforms (2000-01 onwards). Statement 1 describes the Third Generation Reforms (announced with the Tenth Plan, 2002-07). The correct chronological order is 2, 3, 1.
55
The success of which region's economies highlighted the benefits of a balanced mix between the state and the market, influencing the shift away from both pure state-led and pure market-led models?
Explanation: The text states, "By the mid-1990s... The success of East Asian economies highlighted the benefits of a balanced mix between the state and the market".
56
Consider the following statements about early development plans for India:
1. The Bombay Plan was prepared by socialist leaders and focused on cottage industries.
2. The People's Plan, drafted by M.N. Roy, was based on Marxist socialism.
3. The Gandhian Plan was formulated by leading Indian capitalists.
Which of the above statements is/are correct?
1. The Bombay Plan was prepared by socialist leaders and focused on cottage industries.
2. The People's Plan, drafted by M.N. Roy, was based on Marxist socialism.
3. The Gandhian Plan was formulated by leading Indian capitalists.
Which of the above statements is/are correct?
Explanation: The Bombay Plan was by capitalists (Statement 1 is incorrect). The People's Plan was based on Marxist socialism (Statement 2 is correct). The Gandhian Plan was by Sriman Narayan Agarwal, not capitalists (Statement 3 is incorrect). Therefore, only statement 2 is correct.
57
Which of the following was NOT an objective of the Planning Commission as derived from the Constitution's Directive Principles?
Explanation: The text lists Economic Growth, Poverty Alleviation, Employment Generation, Controlling Economic Inequality, and Self-reliance and Modernisation as core objectives. The Washington Consensus is presented as an alternative development strategy, not an objective of India's Planning Commission.
58
The rationale for replacing the Planning Commission with NITI Aayog included the need to move from a centralized planning model to one based on ____________.
Explanation: The text states that NITI Aayog was envisioned as a catalyst that would nurture an enabling environment based on Cooperative Federalism, a key reason for its establishment.
59
Consider the following roles and functions of NITI Aayog:
1. Serving as a "State’s Best Friend at the Centre".
2. Restructuring the planning process from the top-down.
3. Acting as a Knowledge and Innovation Hub.
4. Directly allocating funds to states, similar to the Planning Commission.
Which of the above are correctly stated functions of NITI Aayog?
1. Serving as a "State’s Best Friend at the Centre".
2. Restructuring the planning process from the top-down.
3. Acting as a Knowledge and Innovation Hub.
4. Directly allocating funds to states, similar to the Planning Commission.
Which of the above are correctly stated functions of NITI Aayog?
Explanation: NITI Aayog acts as a "State’s Best Friend at the Centre" and a "Knowledge and Innovation Hub". However, it promotes bottom-up (not top-down) planning and serves as a think-tank without the financial allocation powers of the former Planning Commission. Thus, statements 1 and 3 are correct.
60
Fill in the blank: The guiding principle of ___________ for NITI Aayog emphasizes the integration of villages into the development process.
Explanation: The text lists 'Village' as a guiding principle, with the description "integrating villages into the development process".
61
Assertion (A): The economic reforms of 1991 in India were much wider and deeper than the deregulation attempted in the 1980s.
Reason (R): The 1991 reforms were triggered by a severe fiscal and Balance of Payment crisis, necessitating comprehensive structural changes.
Reason (R): The 1991 reforms were triggered by a severe fiscal and Balance of Payment crisis, necessitating comprehensive structural changes.
Explanation: The text states the 1991 reforms were comprehensive and deeper than those of the 1980s (A is true). It also states these reforms were launched in response to a severe fiscal and BoP crisis (R is true). The severity of the crisis is the reason why the reforms had to be so comprehensive, making R the correct explanation for A.
62
The Planning Model, influenced by the erstwhile Soviet Union and adopted by many newly independent countries, was characterized by:
Explanation: The text describes the Planning Model as being influenced by the Soviet Union and involving a "protectionist economic policy with a central role for the state in planned development" because countries "worried that opening their economies to foreign investment would lead to domination by large multinational corporations."
63
Which of the following is NOT part of the full-time Organisational Framework of NITI Aayog?
Explanation: The text lists the Vice-Chairperson, Members (full-time and part-time), and a CEO as part of the full-time organizational framework. The Chief Ministers of all States are part of the Governing Council, not the full-time framework.
64
The Second Generation of reforms (2000-01 onwards) were considered more delicate than the first because they:
Explanation: The text explicitly states that the Second Generation Reforms were "deeper and more delicate, requiring significant political will."
65
Match the following plans with their core idea:
Select the correct code:
| Plan | Core Idea |
|---|---|
| (a) The Sarvodaya Plan | 1. Provide people with "basic necessities of life" based on Marxist socialism. |
| (b) The Visvesvaraya Plan | 2. Emphasized agriculture and decentralized planning inspired by Gandhian techniques. |
| (c) The People's Plan | 3. Emphasis on industrialization and shift of labor from agriculture to industries. |
Select the correct code:
Explanation: The Sarvodaya Plan emphasized agriculture and decentralization (a-2). The Visvesvaraya Plan proposed industrialization and a labor shift (b-3). The People's Plan was based on Marxist socialism and providing basic necessities (c-1). Thus, the correct match is a-2, b-3, c-1.
66
The National Development Council (NDC) was established with the primary objective of:
Explanation: The text states, "The NDC was established in August 1952 to ensure the cooperation of states in the implementation of the plans and to promote common economic policies."
67
The term 'Privatisation' as part of the LPG reforms can be achieved through which of the following methods mentioned in the text?
1. De-nationalisation (outright sale)
2. Disinvestment (selling of shares)
3. Corporatisation of PSUs
Select the correct answer using the code given below.
1. De-nationalisation (outright sale)
2. Disinvestment (selling of shares)
3. Corporatisation of PSUs
Select the correct answer using the code given below.
Explanation: The text defines Privatisation as occurring through outright sale (de-nationalisation) or through disinvestment. Corporatisation is mentioned under Public Sector Reforms but is a step towards improving PSU performance, not privatisation itself. Therefore, only 1 and 2 are correct methods of privatisation mentioned.
68
The FICCI Proposal of 1934 was significant because it was among the first to recommend the establishment of a ___________.
Explanation: The text states that in 1934, the Federation of Indian Chambers of Commerce and Industry (FICCI) recommended a comprehensive national plan and called for a "National Planning Commission".
69
Which of the following statements correctly differentiates NITI Aayog from the Planning Commission?
Explanation: A key difference highlighted is the shift from the powerful, centralized Planning Commission that could impose policies and allocate funds, to NITI Aayog which acts as a think-tank, a catalyst, and an advisory body, fostering cooperative federalism instead of imposing policies.
70
The Third Generation Reforms marked a formal move towards "inclusive growth and development" by committing to make which institutions fully functional?
Explanation: The text states, "This generation [Third Generation] committed to making the Panchayati Raj Institutions (PRIs) fully functional to ensure that the benefits of reform reached the grassroots level. This marked a formal move towards 'inclusive growth and development'."
71
Which one of the following was a key focus area of the First Generation Reforms (1991-2000)?
Explanation: The text lists "Promotion of the Private Sector: De-reservation and de-licensing of industries" as a focus of the First Generation Reforms. The other options are characteristic of the Second and Third Generation Reforms.
72
The transition from the Planning Commission to NITI Aayog represents a shift from ___________ to ____________.
Explanation: The text mentions that NITI Aayog is designed to transition the government from a 'provider' to an 'enabler' role.
73
What was the primary critique of the "Planning Model" adopted by many developing countries post-independence, which eventually led to a search for alternatives?
Explanation: The text notes that "by the 1970s, many of these planned economies were experiencing slow growth or stagnation," which prompted a re-evaluation of this development strategy.
74
The "Washington Consensus" strategy, popular in the 1980s, promoted which of the following policies?
1. Privatization of state-owned companies.
2. Increasing government interventions in the market.
3. Liberalization by eliminating government controls.
4. Protectionist trade policies.
Select the correct answer using the code given below.
1. Privatization of state-owned companies.
2. Increasing government interventions in the market.
3. Liberalization by eliminating government controls.
4. Protectionist trade policies.
Select the correct answer using the code given below.
Explanation: The text states the Washington Consensus advocated for a minimal role for the government and promoted "privatization (selling off state-owned companies) and liberalization (eliminating government interventions)." Therefore, statements 1 and 3 are correct.
75
The Bombay Plan (1944-45) and the Congress Plan (1938) largely agreed on which key development strategies?
Explanation: The text states that the Bombay Plan "largely agreed with the NPC [National Planning Committee of the Congress Plan] on agrarian restructuring and rapid industrialization with a focus on basic and heavy industries."
76
Which body in the NITI Aayog structure is specifically formed to address issues that impact more than one state or a particular region?
Explanation: The text specifies that "Regional Councils" are "Formed to address specific issues impacting more than one state or a region."
77
The term ________ refers to the selling of shares of state-owned enterprises, which is a common method of privatisation in India.
Explanation: The text explicitly defines disinvestment as "the selling of shares of state-owned enterprises" and notes it's a common form of privatisation.
78
The passing of which Act was a major step towards fiscal consolidation during the Second Generation of reforms?
Explanation: Under the Second Generation Reforms, the text mentions "Fiscal Consolidation: The Fiscal Responsibility and Budget Management (FRBM) Act was passed to ensure fiscal prudence."
79
Which plan, published in 1950, was inspired by both Gandhian techniques and the Sarvodaya concept of Acharya Vinoba Bhave?
Explanation: The text clearly states that the Sarvodaya Plan (1950), published by Jayaprakash Narayan, was "inspired by Gandhian techniques and the Sarvodaya concept of Acharya Vinoba Bhave".
80
Consider the following statements regarding the Twelfth Five-Year Plan (2012-17):
1. It was the last Five-Year Plan implemented by the Planning Commission.
2. Its slogan was "Faster, Sustainable and More Inclusive Growth".
3. It was discontinued midway with the establishment of NITI Aayog.
Which of the above statements is/are correct?
1. It was the last Five-Year Plan implemented by the Planning Commission.
2. Its slogan was "Faster, Sustainable and More Inclusive Growth".
3. It was discontinued midway with the establishment of NITI Aayog.
Which of the above statements is/are correct?
Explanation: The text confirms the slogan of the Twelfth Plan (Statement 2). As the Planning Commission was replaced in 2015, the Twelfth Plan was indeed the last one and was effectively discontinued (Statements 1 and 3 are correct). All three statements are correct.
81
The cautious and gradual approach to economic reforms in India, while distinct from "shock therapy," has often been criticized for its ___________.
Explanation: The text mentions, "This cautious approach, however, has often been criticized for its slow pace."
82
The first Gulf War exacerbated India's 1991 BoP crisis primarily through which two channels mentioned in the text?
Explanation: The text states the crisis was exacerbated by the war, "which caused a spike in oil prices and a drop in private remittances from Indians in the Gulf region."
83
Which guiding principle of NITI Aayog focuses on empowering vulnerable and marginalised sections of society?
Explanation: The text lists 'Inclusion' as a guiding principle with the description "empowering vulnerable sections".
84
The establishment of the National Planning Committee (NPC) in 1938 was on the initiative of whom?
Explanation: The text states, "On the initiative of INC president Subhash C. Bose, the National Planning Committee (NPC) was established..."
85
The Second Generation reforms included a shift in the government's role from being a 'controller' to a _____________.
Explanation: Under "Reforms in Government and Public Institutions" for the Second Generation, the text mentions "Shifting the government's role from 'controller' to 'facilitator'."
86
Which of the following was NOT a key component of the Second Generation Reforms (2000-01 onwards)?
Explanation: Abolishing import restrictions was a key part of the External Sector Reforms of the First Generation (1991-2000). The other options are all listed as components of the Second Generation Reforms.
87
In the context of NITI Aayog, fostering Cooperative Federalism primarily means:
Explanation: The text defines this function as acting "as the primary platform for bringing states together and building a strong nation" with the "active involvement of states."
88
The Eighth Five-Year Plan (1992-97) is significant because it marked a shift towards ____________ planning.
Explanation: The text notes that the Eighth Plan, launched after the reforms, "marked a shift towards indicative planning and greater reliance on the private sector."
89
The core philosophy of the People's Plan (1945), drafted by M.N. Roy, can be described as:
Explanation: The text describes this plan as based on Marxist socialism which "advocated for providing the people with 'basic necessities of life'." This implies a central role for the state in provision.
90
What was the primary function of the Planning Commission regarding national resources?
Explanation: The primary functions of the Planning Commission listed in the text include "to make an assessment of the country's resources, formulate plans for their most effective utilization".
91
Which development strategy emerged from the realization in the mid-1990s that neither the state-led nor the pure market-led model was perfect?
Explanation: The text states, "By the mid-1990s, it was clear that neither the state-led planned economy nor the Washington Consensus was a perfect strategy. The success of East Asian economies highlighted the benefits of a balanced mix between the state and the market," which describes a Mixed Economy.
92
The unofficial "Fourth Generation Reforms" are associated with the vision of a fully ___________ enabled India.
Explanation: The text says this term, coined in 2002, refers to the vision of a fully "information technology-enabled" India.
93
Which plan proposed a ten-year program emphasizing industrialization and a significant shift of labor from agriculture to industries in 1934?
Explanation: The text attributes this proposal to M. Visvesvaraya in his book "The Planned Economy of India," which is referred to as The Visvesvaraya Plan.
94
NITI Aayog's role as a "Knowledge and Innovation Hub" involves:
Explanation: The text specifies this function is to "serve as a repository of research and best practices on good governance."
95
Globalisation, as the ultimate goal of the LPG reforms, was a process sponsored by which international organization that India became a founding member of?
Explanation: The text states, "India became a founding member of the World Trade Organisation (WTO), which sponsored this process of globalisation."
96
As part of the 1991 IMF conditions, what was the mandated change in the peak import tariff?
Explanation: One of the key IMF conditions was a "Drastic reduction in the peak import tariff from 130% to 30%."
97
The Five-Year Plans in India, formulated by the Planning Commission, were a form of:
Explanation: The text implies that the initial planning model was centralized and state-led (Imperative), and only after the 1991 reforms (with the 8th Plan) did it shift towards Indicative Planning.
98
Which guiding principle of NITI Aayog focuses on harnessing the potential of India's youth?
Explanation: The text lists 'Demographic Dividend' as a guiding principle, which refers to leveraging the country's youth population for growth.
99
The shift towards a market economy in 1991 involved decreasing the influence of the state and increasing the influence of _____________.
Explanation: The description of Liberalisation states that it "involves decreasing state influence and increasing the influence of market forces."
100
Assertion (A): NITI Aayog was created to serve as a 'think tank' for the government.
Reason (R): It was felt that a one-size-fits-all, centralized planning approach was not suitable for a diverse country like India.
Reason (R): It was felt that a one-size-fits-all, centralized planning approach was not suitable for a diverse country like India.
Explanation: NITI Aayog was indeed created as a think tank (A is true). The rationale for replacing the Planning Commission was the need to move away from a centralized, one-size-fits-all model to a more cooperative and tailored approach suitable for India's diversity (R is true). This rationale directly explains why a 'think tank' model was preferred over the old commission model, making R the correct explanation for A.