BPSC CCE Prelims
Indian Economy: Historical Background & Economic Reforms Previous Year Questions (PYQs)
Showing solved Previous Year Questions for Chapter: Indian Economy: Historical Background & Economic Reforms
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Which Sector in India has benefitted the most from Globalization ?
Detailed Explanation:
Services sector emerged as the largest beneficiary of globalization in India, contributing over 50% to GDP.
IT exports surged with companies like TCS, Infosys, Wipro becoming global leaders; India became the world's top BPO destination due to English-speaking talent and cost advantages; FDI inflows concentrated in telecom, banking, insurance, and e-commerce; sectors like tourism, healthcare, and financial services expanded rapidly post-1991 reforms.
In contrast, manufacturing grew modestly while agriculture faced challenges from import competition and saw limited export growth despite globalization.
Choose the correct pair from the following options.
Detailed Explanation:
❌ Option 1 – Incorrect: The Fourth Five-Year Plan (1969–74) focused on growth with stability and strengthening agriculture (Green Revolution), not the service sector.
❌ Option 2 – Incorrect: The Fifth Five-Year Plan (1974–79) emphasized poverty alleviation (Garibi Hatao) and self-reliance, not solely industry.
❌ Option 3 – Incorrect: The Third Five-Year Plan (1961–66) prioritized self-reliance and heavy industry; globalisation came only after 1991 economic reforms.
✅ Option 4 – Correct: The First Five-Year Plan (1951–56) concentrated on agriculture and irrigation to address food shortages, with projects like Bhakra Nangal Dam.
Who among the following Indian capitalists was not the architect of the "Bombay Plan"?
Detailed Explanation:
Dhirubhai Ambani founded Reliance Industries in the 1960s, decades after the Bombay Plan (1944) was drafted.
The Bombay Plan was authored by eight prominent industrialists: J.R.D. Tata, G.D. Birla, Lala Shri Ram, Purshottamdas Thakurdas, Kasturbhai Lalbhai, A.D. Shroff, John Mathai, and Ardeshir Dalal. It proposed a 15-year blueprint for state-led industrialization and mixed economy development in post-independence India.
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Which of the following Five-Year Plans was focussed on Human Resource Development?
Detailed Explanation:
The Eighth Five-Year Plan (1992-1997) was the first to focus on Human Resource Development as a central theme, emphasizing health, education, and employment.
The First Plan (1951-56) focused on agriculture and irrigation, the Third Plan (1961-66) emphasized self-reliance and heavy industries, and the Fifth Plan (1974-79) targeted poverty alleviation and employment (Garibi Hatao).
Since the Eighth Plan is not among the given options (First, Third, Fifth), the correct answer is Option 5: None of the above.
In which budget did the Finance Minister announce the Liberalized Exchange Rate Management System?
Detailed Explanation:
The Liberalized Exchange Rate Management System (LERMS) was announced by Finance Minister Dr. Manmohan Singh in the Union Budget 1992-1993.
This dual exchange rate system was introduced as part of economic liberalization reforms and marked a significant step towards convertibility of the Indian Rupee on the current account.
Which of the following were goals of the Five-Year Plans?
1. Growth
2. Modernization
3. Self-reliance
4. Literature
Detailed Explanation:
✅ Statement 1 – Correct: Growth (increase in GDP and national income) was a fundamental objective of all Five-Year Plans in India.
✅ Statement 2 – Correct: Modernization (adoption of new technology and industrial advancement) was a key goal emphasized across the Plans.
✅ Statement 3 – Correct: Self-reliance (reducing dependence on foreign aid and imports) became particularly prominent from the Fourth Plan onwards.
❌ Statement 4 – Incorrect: Literature was never a direct goal of the Five-Year Plans, which focused on economic development.
Since statements 1, 2, and 3 are correct, the answer should be "1, 2 and 3 only" - but this option is not provided. Options 1, 2, and 3 each exclude at least one correct statement, while Option 4 ("More than one of the above") is ambiguous. Therefore, Option 5 ("None of the above") is correct as none of the first three options accurately captures all correct statements.