2.
In a Financial Sector reforms, there was a reduction in SLR as well as in Tax
Police DAV Public School, PAP Campus
Jalandhar Cantt.
ASSIGNMENT
GRADE: XII
SUBJECT: ECONOMICS
TOPIC: NEW ECONOMIC POLICY 1991
❖ QUESTION CARRIES 3 MARKS EACH:
1. India adopted Liberalization in the year 1991 which means private sector
gets greater autonomy, is this policy approaching towards Laissez fare
economy? Give a valid reason on the support of answer.
2. FDI was promoted by raising the equity limit on the contribution of foreign
capital in business ventures from 40% to 51%. What was the objective
behind that?
3. What are Navratana? What is the motive behind Navratana?
4. Privatization caused the shifting of motive for the firms from Social
Welfare to Self Interest, but still with privatization caused a huge
development in Indian Industrial Structure. How?
5. After new Economic Policy India was recognized as an Emerging Economy.
Why?
6. How New Economic Policy caused the Cultural Erosion.
7. There are some enterprises which are categorized as the profit making
industries are for the Government. Indian Government has given great
autonomy to such Industries. Out of them one type of industry where
status is granted to a company which has recorded more than Rs. 5,000
crore of net profit for three consecutive years, an average annual turnover
of Rs. 25,000 crore for three years or should have an average annual net
worth of Rs. 15,000 crore for three years. Some example of such industries
are NTPC, ONGC, SAIL, BHEL, IOCL, HPCL, CIL, GAIL, BPCL and Power Grid
Corporation of India.
The CPSEs which have made profit in the last three years continuously,
pre-tax profit is Rs. 30 crores or more in at least one of the three years and
have a positive net worth.
Identify the types of Industries and differentiate between them.
8. Demonetization was the reason India has shifted towards the
digitalization. Defend and refute the statement.
❖ QUESTION CARRIES 4 MARKS EACH:
1. Outsourcing benefits India, but USA is not supportive of outsourcing. How
the same policy benefits one country and other not.
reforms Corporate tax has also reduced. What was the objective behind
such policies?
3. Differentiate between macro stabilization measures and structural
reforms.
4. Identify either the following statements are true or false:
A) P.V Narsimha Rao is known as Father of Indian Economic Reforms.
B) Liberalization caused removal of license system
5. What were the objectives of liberalization?
6. How India settled their BOP deficit with the help of New Economic Policy
7. By the New Economic Policy Indian Economy became a vibrant economy
but it caused the dualism in Indian Economy as well. Explain.
8. What do you mean by WTO? What are its functions?
❖ QUESTION CARRIES 6 MARKS EACH:
1. How Indian Economy became a Competent Economy after New Economic
Policy 1991
2. “finance minister is like the numeral zero. Its power depends on the
number you place in front of it. The success of a finance minister depends
on the support of the prime minister.”
Sanjay Baru,1991: How P.V. Narsimha Rao Made History
Read the above quotations and answer what was the objective behind
these lines.
3. “foreign Policy is the outcome of economic policy”
Sanjay Baru,1991: How P.V. Narsimha Rao Made History. Explain.
4. What do you mean by Privatization? What are its objective? What are the
rationale behind Privatization?
5. What are the measures of liberalization?