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Industry and Infrastructure PYQs – Economics, SSC & Railway

350 Industry and Infrastructure (Economics) questions asked in recent SSC and Railway exams, newest first, with exam, date & shift, answers and solutions.

📚 350 questionsSSC 218 · Railway 132
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SSC Stenographer 2026 – 12 September 2026 Shift 1 · LPG reforms of 1991

Q1. In the context of the 1991 economic reforms in India, which of the following most accurately describes the role played by multilateral institutions like the IMF and the World Bank?

  1. (a) They provided unconditional aid to help India overcome its fiscal crisis.
  2. (b) They enforced a structural adjustment program as a precondition for emergency financial assistance.
  3. (c) They recommended protectionist trade policies and expansion of the public sector.
  4. (d) They assisted India in nationalizing critical sectors and reducing interest rates.
Answer & solution

Answer: (b) They enforced a structural adjustment program as a precondition for emergency financial assistance.

Answer: Option 2 — They enforced a structural adjustment program as a precondition for emergency financial assistance.
In 1991 India's foreign exchange had fallen to about two weeks of imports.
The IMF and the World Bank lent about US$7 billion, but on conditions — devaluation, fiscal discipline, delicensing, trade opening and disinvestment.
Those conditions became the New Economic Policy of Liberalisation, Privatisation and Globalisation (LPG); the aid was anything but unconditional.
Revision note — The 1991 crisis and the conditional bailout
• Causes: the Gulf War (1990–91) raised the oil bill and cut Gulf remittances; a large fiscal deficit and a heavy external debt had already weakened the economy.
• Reserves fell to roughly US$1 billion; India had to pledge about 67 tonnes of gold to the Bank of England and the Bank of Japan to raise emergency funds.
• Prime Minister P. V. Narasimha Rao and Finance Minister Dr Manmohan Singh announced the reforms; the New Industrial Policy came on 24 July 1991.
• The rupee was devalued in two steps on 1 and 3 July 1991, by about 18–19 per cent against the dollar.
• Stabilisation measures (short term — fiscal and monetary tightening, devaluation) went with structural reforms (long term — delicensing, trade liberalisation, disinvestment, financial-sector reform).
• The Eighth Five-Year Plan (1992–97) was the first plan launched after structural adjustment began.
Do not mix these up
• IMF vs World Bank — the IMF gives short-term balance of payments support; the World Bank gives long-term development and structural lending. Both attached conditions in 1991.
• Stabilisation vs structural adjustment — stabilisation cures the immediate crisis (deficit, inflation, reserves); structural adjustment changes the rules of the economy (licences, tariffs, public sector).
Also asked from this topic: the institutions whose conditions triggered the 1991 reforms (IMF and World Bank); the reserves position in 1991 (two weeks of imports); the July 1991 devaluation (18–20%).
SSC Stenographer 2026 – 12 September 2026 Shift 1 · LPG reforms of 1991

Q2. Under the 1991 Trade and Investment Policy reforms, dismantling the regime of quantitative restrictions on imports and reducing very high tariffs was a mechanism of:

  1. (a) Nationalisation
  2. (b) Privatisation
  3. (c) Liberalisation
  4. (d) Centralisation
Answer & solution

Answer: (c) Liberalisation

Answer: Option 3 — Liberalisation
Removing quantitative restrictions, cutting tariffs and abolishing import licensing loosened government controls on trade — that is liberalisation.
The NCERT lists trade and investment policy reforms as one of the five areas of liberalisation under the New Economic Policy of 1991.
Revision note — Liberalisation under the 1991 reforms
• Five areas of liberalisation: industrial sector, financial sector, tax reforms, foreign exchange reforms, and trade and investment policy reforms.
• Trade policy: quantitative restrictions on imports and exports were dismantled, tariff rates reduced, and import licensing abolished except for hazardous and environmentally sensitive items.
• Quantitative restrictions on manufactured consumer goods and agricultural products were fully removed from April 2001; export duties were removed to make Indian goods competitive.
• Industrial licensing was abolished for all but a few industries — alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and defence equipment, and drugs and pharmaceuticals. The New Industrial Policy (24 July 1991) also gave automatic approval to foreign equity up to 51 per cent in high-priority industries.
• Foreign exchange: the rupee was devalued in July 1991; the exchange rate was later left to the market.
• Financial sector: the RBI's role shifted from regulator to facilitator, and foreign institutional investors (FIIs) were allowed to invest in Indian financial markets.
• The reforms were announced by Finance Minister Dr Manmohan Singh under Prime Minister P.V. Narasimha Rao, after a balance of payments crisis left reserves for barely two weeks of imports.
Do not mix these up
• Liberalisation vs globalisation — liberalisation removes internal controls such as licences, quotas and tariffs; globalisation is the integration of the Indian economy with the world economy.
• Privatisation vs disinvestment — privatisation transfers ownership or management of a public enterprise; disinvestment is the sale of a part of the government's equity.
Also asked from this topic: the measure that best shows 1991 trade liberalisation (abolishing import licensing for most goods); the growth strategy after the LPG reforms (export-led growth).
SSC Stenographer 2026 – 12 September 2026 Shift 2 · Industrial Policy Resolutions (1948, 1956, 1991)

Q3. Which of the following correctly links the concept of “commanding heights of the economy” with India's planning model post-independence?

  1. (a) It refers to state control over agriculture and consumer services to ensure equitable distribution.
  2. (b) It highlights the emphasis on decentralised village economies advocated during the Seventh Plan.
  3. (c) It indicates the state ownership of key sectors such as steel, coal, and infrastructure, seen as essential for national development and security.
  4. (d) It denotes the prioritisation of foreign investment in high-value sectors through joint ventures.
Answer & solution

Answer: (c) It indicates the state ownership of key sectors such as steel, coal, and infrastructure, seen as essential for national development and security.

Answer: Option 3 — It indicates the state ownership of key sectors such as steel, coal, and infrastructure, seen as essential for national development and security.
"Commanding heights" meant that the public sector would own and run the basic and strategic industries — steel, coal, heavy machinery, power, railways, defence — on which the rest of the economy depends.
Private enterprise was left with consumer goods and light industry; agriculture was never nationalised.
Revision note — Commanding heights and the planning model
• The phrase was coined by Lenin in 1922 for the state keeping control of key industries.
• India adopted it through the Industrial Policy Resolution of 30 April 1956, often called the economic constitution of India.
• The 1956 Resolution had three schedules: Schedule A — 17 industries reserved for the state (arms, atomic energy, iron and steel, coal, heavy machinery, aircraft, railways, telephones).
• Schedule B — 12 industries to be progressively state-owned; Schedule C — the rest, open to the private sector.
• It formed the basis of the Second Five-Year Plan (1956–61), built on the Mahalanobis model of rapid industrialisation through heavy and capital-goods industries.
• The three public steel plants of that era — Bhilai (Soviet aid), Rourkela (West German aid) and Durgapur (British aid) — are the classic examples; coal mines were nationalised in 1971–73.
• The 1948 Resolution had first announced the mixed economy; the 1991 New Industrial Policy reversed the doctrine, cutting reserved industries from 17 to 8.
• Today only atomic energy and railway operations remain reserved for the public sector.
• Option 2 is wrong on its dates too: decentralised village industries were the theme of the Gandhian plan, not the Seventh Plan (1985–90), which stressed food, work and productivity.
Do not mix these up
• IPR 1948 vs IPR 1956 — 1948 introduced the mixed economy idea; 1956 gave the public sector the commanding heights and is the one the plans followed.
• Public sector reservation vs licensing — reservation kept an industry only for the state; licensing (under the IDR Act, 1951) controlled what private firms could produce.
Also asked from this topic: the plan built on the 1956 Resolution and its commanding-heights doctrine (Second Five-Year Plan); the commanding heights of 1950–80 (heavy industry, steel and energy).
SSC Stenographer 2026 – 11 September 2026 Shift 1 · LPG reforms of 1991

Q4. Which new policy allowed foreign companies to own up to 51% in Indian firms in certain sectors after 1991?

  1. (a) FDI reforms
  2. (b) Land reforms
  3. (c) MSP policy
  4. (d) Monopolies control policy
Answer & solution

Answer: (a) FDI reforms

Answer: Option 1 — FDI reforms
Under the New Industrial Policy of 24 July 1991, foreign direct investment up to 51 per cent was given automatic approval in 34 high-priority industries.
Opening up foreign equity in this way is precisely the FDI reform of the LPG package.
Revision note — The LPG reforms of 1991
• Announced by Finance Minister Dr Manmohan Singh under Prime Minister P. V. Narasimha Rao; the New Industrial Policy was placed before Parliament on 24 July 1991.
• LPG = Liberalisation, Privatisation, Globalisation. Liberalisation loosened internal controls, privatisation cut the state's stake, globalisation opened the economy outward.
• Industrial licensing was abolished for all but a short list of industries, ending the Licence Raj.
• Licensing stayed only for a few — alcoholic drinks, cigarettes, industrial explosives, hazardous chemicals and defence equipment.
• Industries reserved for the public sector fell from 17 to 8; today only atomic energy and railway operations remain reserved.
• The asset limits of the MRTP Act on large business houses were scrapped, and FERA was later replaced by FEMA, 1999.
• FDI brings a lasting interest and a say in management; FPI is portfolio money in shares and bonds with no control.
• Caps have risen since — 100 per cent FDI on the automatic route is now allowed in many sectors, including coal mining.
Do not mix these up
• Liberalisation vs globalisation — liberalisation eases internal controls on Indian producers; globalisation opens the economy outward to world trade, capital and technology.
• FDI vs FPI — FDI carries management control and a long horizon; FPI is hot money that can leave quickly.
• Privatisation vs disinvestment — privatisation transfers management control to private hands; disinvestment may sell only a minority stake and leave control with the government.
Also asked from this topic: the year FDI was liberalised (1991, up to 51 per cent automatic); the aims of the 1991 Industrial Policy (liberalisation, freer foreign investment).
SSC Stenographer 2026 – 11 September 2026 Shift 2 · Industrial Policy Resolutions (1948, 1956, 1991)

Q5. Which of the following correctly describes the purpose and consequence of the Industrial Policy Resolution of 1956?

  1. (a) It abolished licensing and promoted private sector entry into all sectors of the economy.
  2. (b) It introduced a mixed economy model by clearly demarcating sectors between public and private domains, reinforcing state control over key industries.
  3. (c) It focused on fiscal decentralization by allowing states to independently formulate industrial policies.
  4. (d) It removed trade barriers and prioritized export-led industrialisation.
Answer & solution

Answer: (b) It introduced a mixed economy model by clearly demarcating sectors between public and private domains, reinforcing state control over key industries.

Answer: Option 2 — It introduced a mixed economy model by clearly demarcating sectors between public and private domains, reinforcing state control over key industries.
The IPR 1956 sorted industries into three Schedules and reserved the basic and strategic ones for the State, so that the public sector held the commanding heights of the economy.
Licensing was tightened, not abolished — that came only with the New Industrial Policy of 1991.
Revision note — Industrial Policy Resolution, 1956
• Adopted on 30 April 1956, after the Congress resolution at Avadi (January 1955) for a socialistic pattern of society.
• It formed the basis of the Second Five-Year Plan (1956–61) and the Mahalanobis heavy-industry model.
• Schedule A — 17 industries exclusively for the State (arms, atomic energy, iron and steel, coal, railways, air transport, heavy machinery, mineral oils).
• Schedule B — 12 industries where the State would progressively set up new units while the private sector could supplement (aluminium, fertilisers, road transport, sea transport, machine tools).
• Schedule C — all remaining industries, left to the private sector but under licensing through the Industries (Development and Regulation) Act, 1951.
• It also promoted cottage and small-scale industries, balanced regional development and the reduction of income disparities; economists call it India's economic constitution.
• The earlier IPR 1948 (6 April 1948) first laid down the mixed economy; the New Industrial Policy of 24 July 1991 abolished licensing for all but a handful of industries.
Do not mix these up
• IPR 1948 vs IPR 1956 — 1948 introduced the mixed economy with four categories; 1956 expanded the public sector's role with three schedules.
• IPR 1956 vs NIP 1991 — 1956 reserved industries for the State and licensed the rest; 1991 delicensed industry and cut the reserved list from 17 to 8.
Also asked from this topic: the year of India's first Industrial Policy (1948); the central theme of the IPR 1956 (State control of the commanding heights); its industry classification (Schedules A, B, C).
SSC Stenographer 2026 – 11 September 2026 Shift 2 · LPG reforms of 1991

Q6. Which policy included the abolition of industrial licensing for most sectors as a key step during the 1991 reforms?

  1. (a) Liberalisation
  2. (b) Privatisation
  3. (c) Globalisation
  4. (d) Nationalisation
Answer & solution

Answer: (a) Liberalisation

Answer: Option 1 — Liberalisation
Abolishing industrial licensing removed the government's controls and permissions over Indian producers — that is liberalisation.
Privatisation transfers ownership of public enterprises, and globalisation opens the economy outward to world trade and capital.
Revision note — New Industrial Policy, 24 July 1991
• Announced under Prime Minister P. V. Narasimha Rao and Finance Minister Dr Manmohan Singh after the balance of payments crisis, when reserves covered barely two weeks of imports.
• Industrial licensing was abolished for all but 18 industries, later cut to a handful — alcohol, cigarettes, hazardous chemicals, industrial explosives, and electronic aerospace and defence equipment.
• Industries reserved for the public sector fell from 17 to 8; today only atomic energy and railway operations remain.
• The MRTP Act asset ceiling on big business houses was scrapped; automatic approval for FDI up to 51 per cent in 34 high-priority industries; FERA was later replaced by FEMA (1999).
• Licensing itself dated from the Industries (Development and Regulation) Act, 1951 — the Licence Raj — under which permission was needed to start or expand a unit.
• The rupee was devalued twice in July 1991, and disinvestment of PSU shares began in 1991-92.
Do not mix these up
• Liberalisation vs privatisation — liberalisation removes controls (licences, MRTP limits, import quotas); privatisation changes the ownership of PSUs.
• Liberalisation vs globalisation — internal deregulation of Indian producers versus integration with the world economy.
Also asked from this topic: the year the industrial licensing system began (1951); the sectors still under compulsory licensing after 1991 (alcohol, cigarettes, explosives).
SSC Stenographer 2026 – 10 September 2026 Shift 1 · Make in India, Startup India and PLI

Q7. Which scheme is aimed at boosting domestic manufacturing by offering financial incentives on incremental sales?

  1. (a) Atmanirbhar Bharat Abhiyan
  2. (b) PLI Scheme
  3. (c) Stand-Up India
  4. (d) National Skill Qualification Framework
Answer & solution

Answer: (b) PLI Scheme

Answer: Option 2 — PLI Scheme
The Production Linked Incentive (PLI) scheme pays a company an incentive calculated on its incremental sales of goods made in India over a base year.
The incentive is earned only when output actually rises, which is why it is aimed squarely at domestic manufacturing.
Revision note — Production Linked Incentive scheme
• Announced in 2020; the first PLI, for large-scale electronics manufacturing, was notified in April 2020.
• It now covers 14 sectors with a total outlay of about ₹1.97 lakh crore.
• The sectors include mobile phones and electronics, pharmaceuticals, medical devices, automobiles, telecom, textiles, food products, white goods, solar PV modules, ACC batteries, drones and speciality steel.
• Leather is not one of the PLI sectors — a favourite exception question.
• Line ministries run their own PLI schemes; DPIIT under the Ministry of Commerce and Industry coordinates.
• Atmanirbhar Bharat Abhiyan (May 2020) is the umbrella self-reliance package, not a sales-linked incentive.
• Stand-Up India (5 April 2016) gives bank loans of ₹10 lakh to ₹1 crore to SC, ST and women entrepreneurs, and the NSQF (2013) is a skill-certification framework.
• Make in India was launched on 25 September 2014 to make India a global manufacturing hub.
Do not mix these up
• Stand-Up India vs Start-Up India — Stand-Up India is a bank loan scheme for SC, ST and women entrepreneurs; Start-Up India (16 January 2016) gives tax and regulatory relief to recognised start-ups.
• PLI vs Make in India — Make in India is a campaign; PLI is the cash incentive that puts money behind it.
Also asked from this topic: the primary goal of the PLI scheme (boost domestic manufacturing and attract investment); the number of sectors covered (14); the sector NOT covered under PLI (leather).
SSC Stenographer 2026 – 10 September 2026 Shift 1 · LPG reforms of 1991

Q8. Which of the following is not a component of India's 1991 economic reforms?

  1. (a) Liberalisation
  2. (b) Privatisation
  3. (c) Socialisation
  4. (d) Globalisation
Answer & solution

Answer: (c) Socialisation

Answer: Option 3 — Socialisation
The 1991 New Economic Policy rests on three pillars — Liberalisation, Privatisation and Globalisation (LPG).
Socialisation is not one of them; it belongs to the socialist planning era the reforms moved away from.
Revision note — The LPG reforms of 1991
• Announced by Finance Minister Dr Manmohan Singh under Prime Minister P. V. Narasimha Rao; the New Industrial Policy came on 24 July 1991.
• The trigger was a balance of payments crisis — reserves had fallen to about two weeks of imports, and India pledged gold abroad and borrowed from the IMF and the World Bank.
• Liberalisation loosens internal controls: industrial licensing was abolished except for a short list of industries.
• Privatisation transfers ownership of public enterprises; industries reserved for the public sector were cut from 17 to 8, and today only atomic energy and railway operations remain.
• Globalisation links India to world markets: FDI up to 51 per cent was allowed in many industries and the rupee was devalued twice in July 1991.
• The short-run stabilisation measures targeted inflation and the balance of payments; the structural measures targeted long-run efficiency.
• Outsourcing is the best-known outcome of globalisation in India, while liberalisation and privatisation are policy measures.
Do not mix these up
• Liberalisation vs globalisation — liberalisation loosens internal controls on Indian producers; globalisation opens the economy outward to world markets.
• Privatisation vs disinvestment — privatisation transfers management control; disinvestment may sell only a minority stake and leave control with the government.
Also asked from this topic: what LPG stands for (Liberalisation, Privatisation, Globalisation); the year of the New Economic Policy (1991); the two bodies whose loans shaped it (World Bank and IMF).
SSC Stenographer 2026 – 10 September 2026 Shift 1 · LPG reforms of 1991

Q9. Which statement best describes “globalisation” under economic reforms after 1991?

  1. (a) Making exports illegal
  2. (b) Reducing India’s global trade
  3. (c) Integrating India with global market by reducing tariffs, export incentives, and FDI
  4. (d) Strengthening government monopolies
Answer & solution

Answer: (c) Integrating India with global market by reducing tariffs, export incentives, and FDI

Answer: Option 3 — Integrating India with global market by reducing tariffs, export incentives, and FDI
Globalisation is the outward limb of the 1991 reforms — linking India to world markets through freer flows of trade, capital and technology.
Lower tariffs, incentives for exports and an open door to foreign direct investment are exactly its instruments.
Revision note — The LPG reforms of 1991
• Announced by Finance Minister Dr Manmohan Singh under Prime Minister P. V. Narasimha Rao; the New Industrial Policy came on 24 July 1991.
• The trigger was a balance of payments crisis — reserves had fallen to about two weeks of imports and India pledged gold with the Bank of England.
• The rupee was devalued twice in July 1991, by about 18 to 19 per cent in all.
• Industrial licensing was abolished except for a short list, and the industries reserved for the public sector fell from 17 to 8; FDI up to 51 per cent was allowed in 34 high-priority industries.
• Peak customs duty was cut from over 200 per cent to about 10 per cent by 2007-08, and quantitative restrictions on imports were removed.
• FEMA, 1999 replaced FERA, 1973; the rupee became fully convertible on the current account in 1994; India joined the WTO on 1 January 1995.
Do not mix these up
• Liberalisation vs globalisation — liberalisation loosens internal controls on Indian producers; globalisation opens the economy outward.
• Privatisation vs disinvestment — privatisation transfers management control; disinvestment may sell only a minority stake and leave control with the government.
Also asked from this topic: the reform that let MNCs enter India (globalisation); the Prime Minister who began the LPG reforms (P. V. Narasimha Rao); the lenders behind them (IMF and World Bank).
SSC Stenographer 2026 – 10 September 2026 Shift 3 · LPG reforms of 1991

Q10. Which of the following best characterizes the nature and objectives of second-generation economic reforms in India, initiated after the initial 1991 liberalization?

  1. (a) They focused exclusively on reversing the first-generation reforms due to social backlash
  2. (b) They aimed at deepening structural changes by improving governance, labor laws, financial sector regulation, and infrastructure development
  3. (c) They sought to reintroduce industrial licensing and restrict foreign direct investment
  4. (d) They were limited to agricultural subsidies and rural employment schemes
Answer & solution

Answer: (b) They aimed at deepening structural changes by improving governance, labor laws, financial sector regulation, and infrastructure development

Answer: Option 2 — They aimed at deepening structural changes by improving governance, labor laws, financial sector regulation, and infrastructure development
The first-generation reforms of 1991 freed the product market — licensing, trade and foreign investment.
The second generation, from the late 1990s, went after the harder ground: factor markets and institutions — labour, land, finance, infrastructure and governance.
Revision note — Second-generation economic reforms
• First-generation reforms (1991-96): industrial licensing abolished, the rupee devalued, import tariffs cut and FDI allowed up to 51 per cent in many industries.
• They also diluted the MRTP Act and cut the industries reserved for the public sector from 17 to 8.
• Second-generation reforms began in the late 1990s; the phrase entered official use around the Economic Survey of 1999-2000, and the agenda is still unfinished.
• Finance and insurance were opened: the IRDA Act, 1999 admitted private and foreign insurers and ended the LIC and GIC monopoly, while capital-market regulation under SEBI was tightened.
• Infrastructure was restructured: the New Telecom Policy, 1999 moved operators from fixed licence fees to revenue sharing.
• The National Highways Development Project and the Golden Quadrilateral began in 1998-99, and the Electricity Act, 2003 unbundled the state electricity boards.
• Fiscal and tax reform followed: the FRBM Act, 2003 set deficit targets, State VAT replaced sales tax from 2005, and the process led on to the GST in 2017.
• Governance and factor markets: disinvestment got its own ministry in 1999, while labour law reform — later consolidated into four Labour Codes (2019-20) — and land acquisition remain the slowest parts.
Do not mix these up
• First vs second generation — the first freed the product market (licences, trade, FDI); the second targets factor markets and institutions (labour, land, finance, governance).
• Privatisation vs disinvestment — privatisation transfers management control to private hands; disinvestment may sell only a minority stake and leave control with the government.
Also asked from this topic: how second-generation reforms affected foreign investment (they raised it by improving the investment climate); what the 1991 crisis was a shortage of (foreign exchange).
SSC Stenographer 2026 – 10 September 2026 Shift 3 · LPG reforms of 1991

Q11. In the context of the 1991 economic reforms in India, what was the underlying rationale for promoting privatization, and why was it considered a shift in the philosophy of state intervention in the economy?

  1. (a) To achieve complete withdrawal of the state from all productive sectors and allow only foreign companies to invest
  2. (b) To raise immediate fiscal revenue by auctioning public assets without concern for efficiency
  3. (c) To reduce the fiscal burden, improve efficiency of public enterprises, and redefine the role of the state from owner to facilitator
  4. (d) To abolish the public sector and replace it with state monopolies in defense and heavy industries
Answer & solution

Answer: (c) To reduce the fiscal burden, improve efficiency of public enterprises, and redefine the role of the state from owner to facilitator

Answer: Option 3 — To reduce the fiscal burden, improve efficiency of public enterprises, and redefine the role of the state from owner to facilitator
By 1991 loss-making public enterprises were a steady drain on the budget.
Privatisation was meant to cut that fiscal burden, raise efficiency, and move the state from owner-producer to facilitator and regulator.
Revision note — Privatisation under the 1991 reforms
• The reforms came under Prime Minister P. V. Narasimha Rao, with Dr Manmohan Singh as Finance Minister; the New Industrial Policy was announced on 24 July 1991.
• The trigger was a balance of payments crisis — reserves had fallen to roughly two weeks of imports, and the conditions of the IMF and the World Bank shaped the LPG package.
• Industrial licensing was abolished for most industries, and the industries reserved for the public sector were cut from 17 to 8.
• Today only atomic energy and railway operations remain closed to private entry.
• Disinvestment is the usual route to privatisation here — a minority sale keeps government control, while a strategic sale hands over management as well.
• DIPAM (Department of Investment and Public Asset Management, renamed in 2016) runs the process; Maharatna, Navratna and Miniratna status instead gives profitable PSUs autonomy.
• The largest strategic sale so far is Air India to the Tata group, completed in January 2022.
Do not mix these up
• Privatisation vs disinvestment — privatisation transfers management control; disinvestment may sell only a minority stake and leave the government in charge.
• Liberalisation vs privatisation — liberalisation removes licensing and controls on producers; privatisation changes who owns the enterprise.
Also asked from this topic: what disinvestment sells stakes in (public enterprises); the sale transferring only part of PSU ownership (minority sale); the bodies behind the 1991 reforms (IMF, World Bank).
SSC Stenographer 2026 – 9 September 2026 Shift 1 · Disinvestment

Q12. Under the 1991 economic reforms, reducing government equity in Public Sector Undertakings and selling shares to private entities was a mechanism of:

  1. (a) Globalisation
  2. (b) Liberalisation
  3. (c) Privatisation
  4. (d) Nationalisation
Answer & solution

Answer: (c) Privatisation

Answer: Option 3 — Privatisation
Cutting the government's equity in a PSU and selling those shares to private hands transfers ownership — that is privatisation, carried out through disinvestment.
Revision note — Privatisation and disinvestment under the 1991 reforms
• Disinvestment is the sale of part or all of the government's equity in a public sector enterprise, to raise resources and improve efficiency.
• A minority sale keeps management control with the government; a strategic sale hands over control and is full privatisation. A 100 per cent transfer is total denationalisation.
• Privatisation is the second limb of the LPG reforms of 1991 — Liberalisation, Privatisation, Globalisation — under PM P. V. Narasimha Rao and Finance Minister Dr Manmohan Singh.
• The trigger was the balance of payments crisis; India borrowed from the IMF and the World Bank, whose conditions shaped the New Economic Policy.
• The New Industrial Policy of 24 July 1991 abolished industrial licensing for most industries and cut the industries reserved for the public sector from 17 to 8.
• Disinvestment receipts are capital receipts — they reduce the government's financial assets. Disinvestment is handled by DIPAM (Department of Investment and Public Asset Management), Ministry of Finance.
Do not mix these up
• Privatisation vs liberalisation — privatisation changes ownership; liberalisation removes regulation, the licence-permit-quota raj.
• Privatisation vs globalisation — privatisation is internal (who owns the firm); globalisation is external (linking India to world markets).
• Disinvestment vs privatisation — a minority-stake disinvestment leaves control with the government; only a strategic sale amounts to privatisation.
• Privatisation vs nationalisation — nationalisation is the opposite, the State taking over private firms, as with the 14 banks in 1969 and 6 more in 1980.
Also asked from this topic: what disinvestment sells stakes in (public enterprises); the sale that transfers only partial ownership (minority sale);
the bodies whose emergency loans triggered the 1991 reforms (IMF and World Bank); the receipt category of disinvestment (capital receipts).
SSC Stenographer 2026 – 9 September 2026 Shift 2 · Industrial Policy Resolutions (1948, 1956, 1991)

Q13. The stringent industrial licensing regime in India (pre-1991) often led to which unintended consequence for established firms, despite aiming to prevent monopolies?

  1. (a) Excessive foreign competition.
  2. (b) Rapid expansion of small-scale industries.
  3. (c) Reduced incentive for technological upgradation and efficiency.
  4. (d) Increased diversification into global markets.
Answer & solution

Answer: (c) Reduced incentive for technological upgradation and efficiency.

Answer: Option 3 — Reduced incentive for technological upgradation and efficiency.
A licence kept out new entrants, so an established firm faced no real competition and had little reason to cut costs or modernise.
The same regime shut out foreign competition and blocked expansion abroad, so options 1, 2 and 4 describe the opposite of what happened.
Revision note — Industrial licensing and the Licence Raj
• Licensing came in with the Industries (Development and Regulation) Act, 1951; permission was needed to start a unit, to expand output and even to change the product.
• The Industrial Policy Resolution, 1956 — the “economic constitution” of India — divided industry into three schedules and reserved 17 industries for the state.
• Effects of the Licence Raj: entry barriers, rent-seeking and corruption, capacity under-utilisation, and big houses hoarding licences to pre-empt rivals.
• The MRTP Act, 1969, passed in the Fourth Plan period, tried to curb the concentration of economic power; it was replaced by the Competition Act, 2002 and the Competition Commission of India.
• The New Industrial Policy of 24 July 1991 abolished licensing for all but a few industries and cut the reserved list from 17 to 8; today only atomic energy and railway operations stay with the state.
• Compulsory licensing still applies to a short list — alcoholic drinks, cigarettes and tobacco, industrial explosives, hazardous chemicals, and defence and aerospace equipment.
Do not mix these up
• MRTP Act vs Competition Act — MRTP (1969) sought to prevent the concentration of economic power; the Competition Act (2002) regulates anti-competitive conduct itself, through the CCI.
• Delicensing vs disinvestment — delicensing removed the permit to produce; disinvestment sells government equity in a public enterprise.
Also asked from this topic: the year the industrial licensing system began (1951, SSC GD 2026); the aim of the MRTP Act, 1969 (to prevent concentration of economic power, Delhi Police Constable 2025).
SSC Stenographer 2026 – 9 September 2026 Shift 2 · Public sector undertakings (Maharatna, Navratna, Miniratna)

Q14. A critical challenge faced by Public Sector Enterprises (PSEs) in India during the 1947-1990 period, beyond just financial losses, was often related to:

  1. (a) Lack of a clear social objective in their mandates.
  2. (b) Excessive decentralization of decision-making authority.
  3. (c) Bureaucratic rigidities and political interference in their operations.
  4. (d) Absence of skilled labor and management expertise.
Answer & solution

Answer: (c) Bureaucratic rigidities and political interference in their operations.

Answer: Option 3 — Bureaucratic rigidities and political interference in their operations.
PSEs were run through ministries, so pricing, plant location and even senior appointments were decided politically rather than commercially.
Their social objectives were in fact very clearly stated, and decision-making was over-centralised, not decentralised — so options 1 and 2 are the reverse of the truth.
Revision note — Public Sector Enterprises, 1947–1990
• The public sector was given the commanding heights of the economy by the Industrial Policy Resolutions of 1948 and 1956, in line with a socialistic pattern of society.
• Its stated aims were self-reliance, balanced regional development, employment generation and the control of monopoly — profit was never the sole test.
• The number of Central Public Sector Enterprises grew from 5 in 1951 to well over 240 by 1990.
• Chronic problems: political interference, bureaucratic delay, overstaffing, low capacity utilisation, administered prices and soft budget constraints.
• Sick industrial units were dealt with by the BIFR, set up under the SICA, 1985.
• Reform after 1991: disinvestment began in 1991–92 and the Disinvestment Commission was set up in 1996 under G. V. Ramakrishna.
• Navratna status, created in the late 1990s, gives profitable CPSEs greater managerial and financial autonomy.
• CPSEs are graded today as Maharatna, Navratna and Miniratna, by turnover, net worth and profit record.
Do not mix these up
• Privatisation vs disinvestment — privatisation transfers management control to private hands; disinvestment may sell only a minority stake and leave control with the government.
• Maharatna vs Navratna — Maharatna is the top grade, open only to a Navratna listed company meeting far higher turnover and net-worth thresholds.
Also asked from this topic: the fundamental orientation of India's public sector industries (wider socio-economic objectives, SSC GD 2026); the year CPSE disinvestment began (1991, SSC MTS 2026).
SSC Stenographer 2026 – 9 September 2026 Shift 2 · LPG reforms of 1991

Q15. The New Economic Policy 1991 aimed to reduce fiscal deficit to what medium-term percentage of GDP?

  1. (a) 10.00%
  2. (b) 7.0%
  3. (c) 3-4%
  4. (d) 8-9%
Answer & solution

Answer: (c) 3-4%

Answer: Option 3 — 3-4%
The New Economic Policy of 1991 set a medium-term aim of bringing the fiscal deficit down to about 3 to 4 per cent of GDP.
The Centre's gross fiscal deficit had reached roughly 8.4 per cent of GDP in 1990-91, so the target meant more than halving it.
Revision note — The 1991 crisis and the New Economic Policy
• Taking the Centre and the states together, the gross fiscal deficit had climbed to about 10 per cent of GDP by 1990-91.
• Foreign exchange reserves had fallen to roughly two weeks of imports; India pledged gold abroad and borrowed about 7 billion dollars from the IMF and the World Bank.
• Announced by Finance Minister Dr Manmohan Singh under Prime Minister P. V. Narasimha Rao; the New Industrial Policy came on 24 July 1991.
• The rupee was devalued twice in July 1991, and industrial licensing was abolished for all but a short list of industries.
• The FRBM Act, 2003 later put a fiscal deficit ceiling of 3 per cent of GDP into law, with an annual cut of 0.3 per cent of GDP.
• The Eighth Five-Year Plan (1992–97) was launched in this setting, against a worsening balance of payments and a rising debt burden.
Do not mix these up
• Fiscal deficit vs revenue deficit — fiscal deficit is total expenditure minus total receipts excluding borrowings; revenue deficit is revenue expenditure minus revenue receipts.
• Fiscal deficit vs primary deficit — the primary deficit is the fiscal deficit minus interest payments.
• 1991 target vs FRBM target — the New Economic Policy aimed at 3–4 per cent; the FRBM Act, 2003 later fixed 3 per cent.
Also asked from this topic: the gross fiscal deficit reached by 1990-91 (about 10 per cent of GDP); the FRBM ceiling (3 per cent of GDP); the shortage behind the 1991 crisis (foreign exchange).
RRB Group D 2025-26 – 4 August 2026 Shift 1 · MSME sector

Q16. Which scheme of the Ministry of MSME achieved a major employment-generation milestone during the 15th Finance Commission period, as reported in May 2026?

  1. (a) Pradhan Mantri Mudra Yojana (PMMY)
  2. (b) Deen Dayal Antyodaya Yojana (DAY-NRLM)
  3. (c) Prime Minister's Employment Generation Programme (PMEGP)
  4. (d) Skill India Mission (SIM)
Answer & solution

Answer: (c) Prime Minister's Employment Generation Programme (PMEGP)

Answer: Option 3 — PMEGP
ThePrime Minister's Employment Generation Programme (PMEGP)hit an employment milestone in the 15th FC period → Option 3. *(Verify against the official key.)*
RRB NTPC UG CBT-1 2025-26 – 20 June 2026 Shift 1 · LPG reforms of 1991

Q17. What was the main aim of the 1991 economic reforms in India regarding industries?

  1. (a) To increase government control
  2. (b) To reduce agricultural output
  3. (c) To decrease foreign investment
  4. (d) To promote privatization and competition
Answer & solution

Answer: (d) To promote privatization and competition

1991 Economic Reforms - Industrial Policy
Context: India faced severe economic crisis in 1991
Key Reforms:
• Liberalization - Reduced government control
• Privatization - Encouraged private sector participation
• Globalization - Opened economy to foreign investment
Industrial licensing abolished for most sectors
Public sector monopoly reduced significantly
Foreign investment limits increased
Main aim: Shift from controlled economy to market-driven
Answer: Option 4 → To promote privatization and competition
RRB NTPC UG CBT-1 2025-26 – 20 June 2026 Shift 2 · Infrastructure sectors

Q18. Which of the following statements about the National Industrial Corridor Development Programme is INCORRECT?

  1. (a) It aims at providing complete “plug and play” infrastructure till the plot level along with building sustainable future ready cities
  2. (b) It seeks to develop new industrial cities as smart cities by integrating next-generation technologies across infrastructure sectors
  3. (c) It is an infrastructure initiative that aims to shape the future of urban and industrial development
  4. (d) The program started with the launch of Palakkad-Bangalore-Mumbai-Ahmedabad Industrial Corridor in 2010
Answer & solution

Answer: (d) The program started with the launch of Palakkad-Bangalore-Mumbai-Ahmedabad Industrial Corridor in 2010

National Industrial Corridor Development Programme
Statement 1: Correct - Provides plug and play infrastructure at plot level with sustainable cities
Statement 2: Correct - Develops smart industrial cities using next-gen technologies
Statement 3: Correct - Infrastructure initiative for urban and industrial development
Statement 4:INCORRECT- Program started withDelhi-Mumbai Industrial Corridor (DMIC)in 2007-08, not Palakkad-Bangalore-Mumbai-Ahmedabad corridor
Key Fact: DMIC was the first industrial corridor launched under this programme
Answer: Option 4 → The program started with the launch of Palakkad-Bangalore-Mumbai-Ahmedabad Industrial Corridor in 2010
RRB NTPC UG CBT-1 2025-26 – 20 June 2026 Shift 3 · LPG reforms of 1991

Q19. The balance of payments crisis that India faced in 1991 occurred mainly due to:

  1. (a) Excess industrial production
  2. (b) Large fiscal and current account deficits
  3. (c) Rapid growth in service exports
  4. (d) Sudden surge in foreign remittances
Answer & solution

Answer: (b) Large fiscal and current account deficits

India's 1991 Balance of Payments Crisis
Main Causes:
• Largefiscal deficit(government overspending)
• Highcurrent account deficit(imports >> exports)
• Gulf War (1990-91) → oil prices rose sharply
• Foreign exchange reserves fell to$1 billion(barely 2 weeks of imports)
Result:India had to pledge gold to IMF and adoptLPG reforms(Liberalization, Privatization, Globalization)
Options 1, 3, 4 are incorrect — they would improve, not worsen, the crisis
Answer: Option 2 → Large fiscal and current account deficits
RRB NTPC UG CBT-1 2025-26 – 19 June 2026 Shift 1 · LPG reforms of 1991

Q20. In which of the following ways has the private sector contributed to India's industrial growth and global expansion since the economic reforms of 1991?

  1. (a) Limiting its activities to non-core industries
  2. (b) Relying solely on government subsidies for expansion
  3. (c) Restricting industrial growth to maintain a stable economy
  4. (d) Aggressively pursuing global acquisitions and enhancing industrial growth
Answer & solution

Answer: (d) Aggressively pursuing global acquisitions and enhancing industrial growth

Topic:Economic Reforms 1991 - Private Sector Role
Post-1991 Liberalization Impact:
• License Raj abolished, private sector freed from restrictions
• FDI allowed, global market access opened
• Indian companies expanded internationally through acquisitions
Key Examples:
Tata acquired Jaguar-Land Rover, Corus Steel
Reliance, Infosys, Wipro became global players
Private sector entered core industries (telecom, steel, aviation)
Options 1,2,3 contradict actual post-reform trends
Answer: Option 4 → Aggressively pursuing global acquisitions and enhancing industrial growth
RRB NTPC UG CBT-1 2025-26 – 19 June 2026 Shift 2 · Infrastructure sectors

Q21. In which year was the PM Gati Shakti National Master Plan (NMP) launched in India to ensure integrated planning and coordinated execution of infrastructure projects?

  1. (a) 2023
  2. (b) 2021
  3. (c) 2024
  4. (d) 2022
Answer & solution

Answer: (b) 2021

PM Gati Shakti National Master Plan (NMP)
Launched by: Prime Minister Narendra Modi
Launch Date:October 13, 2021
Purpose: Integrated planning and coordinated execution of infrastructure projects across India
Key Feature: Multi-modal connectivity through 6 pillars - Roads, Railways, Airports, Ports, Mass Transport, Waterways
Answer: Option 2 → 2021
RRB NTPC UG CBT-1 2025-26 – 19 June 2026 Shift 3 · LPG reforms of 1991

Q22. Which of the following was one of the primary objectives of India's 1991 economic reforms?

  1. (a) Strengthening import barriers
  2. (b) Opening up the economy to global markets
  3. (c) Promoting public sector dominance
  4. (d) Achieving self-sufficiency in agriculture
Answer & solution

Answer: (b) Opening up the economy to global markets

India's 1991 Economic Reforms
Context: Launched by PM Narasimha Rao and FM Manmohan Singh to address balance of payments crisis.
Key Objectives:
Liberalization → Reduced government controls and licensing
Privatization → Encouraged private sector participation
Globalization →Opened economy to global marketsthrough reduced tariffs and FDI
The reforms shifted India from a closed, socialist economy to a market-oriented economy integrated with global trade.
Answer: Option 2 → Opening up the economy to global markets
RRB NTPC UG CBT-1 2025-26 – 19 June 2026 Shift 3 · Disinvestment

Q23. Policy on disinvestment gathered steam when a new Department of Disinvestment was created in _____, which became a full Ministry in 2001.

  1. (a) 2000
  2. (b) 1991
  3. (c) 1999
  4. (d) 1992
Answer & solution

Answer: (c) 1999

Topic: Disinvestment Policy in India
The Department of Disinvestment was created in1999.
It was later upgraded to a full-fledgedMinistry of Disinvestment in 2001.
This was part of India's economic reforms to reduce government stake in PSUs.
Answer: Option 3 → 1999
RRB NTPC UG CBT-1 2025-26 – 18 June 2026 Shift 1 · LPG reforms of 1991

Q24. Which of the following factors does NOT promote globalisation?

  1. (a) Removal of trade barriers
  2. (b) Subsidies and protectionism in domestic markets
  3. (c) Foreign Direct Investment (FDI)
  4. (d) Privatization of state-owned enterprises
Answer & solution

Answer: (b) Subsidies and protectionism in domestic markets

Globalisationmeans integration of economies through trade, investment, and technology.
Factors promoting globalisation:
• Removal of trade barriers → encourages free trade
• FDI → brings foreign capital and technology
• Privatization → increases efficiency and global competition
Subsidies and protectionism:
• Protect domestic industries from foreign competition
• Create trade barriers and restrict imports
• Oppose the principles of free trade and globalisation
Answer: Option 2 → Subsidies and protectionism in domestic markets
RRB NTPC UG CBT-1 2025-26 – 18 June 2026 Shift 2 · Infrastructure sectors

Q25. Which of the following strategies is crucial for fostering infrastructure development in developing countries?

  1. (a) Promotion of public-private partnerships
  2. (b) Focusing only on urban areas
  3. (c) Sole reliance on government funding
  4. (d) Restricting foreign investment
Answer & solution

Answer: (a) Promotion of public-private partnerships

Infrastructure Development in Developing Countries
Public-Private Partnerships (PPP)combine government resources with private sector efficiency and capital.
Benefits of PPP:
• Reduces government financial burden
• Brings technical expertise and innovation
• Ensures faster project completion
• Shares risks between public and private sectors
Why other options are incorrect:
Option 2: Rural areas also need infrastructure
Option 3: Government funding alone is insufficient
Option 4: Foreign investment brings capital and technology
Answer: Option 1 → Promotion of public-private partnerships
RRB NTPC UG CBT-1 2025-26 – 18 June 2026 Shift 3 · Disinvestment

Q26. In which of the following years did the Tata Group take over state-owned Air India?

  1. (a) 2016
  2. (b) 2019
  3. (c) 2022
  4. (d) 2013
Answer & solution

Answer: (c) 2022

Topic: Air India Privatization
Air India was India's national carrier owned by the government.
In January 2022, the Tata Group won the bid to acquire Air India.
The takeover was completed on27 January 2022.
Tata Sons paid ₹18,000 crore for 100% stake in Air India.
This marked Air India's return to Tata Group after 69 years.
Answer: Option 3 → 2022
RRB NTPC UG CBT-1 2025-26 – 17 June 2026 Shift 1 · Infrastructure sectors

Q27. Which statement best explains why transport and communication infrastructure are vital for India’s economic growth?

  1. (a) It primarily serves elite passenger travel without influencing economic output
  2. (b) It links production centres with markets, enhancing trade and economic activity
  3. (c) It limits industrial expansion by diverting funds from core economic sectors
  4. (d) It increases regional isolation by reducing interaction among different areas
Answer & solution

Answer: (b) It links production centres with markets, enhancing trade and economic activity

Topic: Transport & Communication Infrastructure
Role in Economic Growth:
• Connects production centers to consumer markets
• Facilitates movement of goods, services, and labor
• Reduces transaction costs and time
• Enables regional specialization and trade
• Attracts investment and industrial development
Analysis of Options:
Option 1: Incorrect - Infrastructure serves all sectors, not just elite travel
Option 3: Incorrect - Infrastructure enables industrial expansion
Option 4: Incorrect - It reduces isolation, not increases it
Answer: Option 2 → It links production centres with markets, enhancing trade and economic activity
RRB NTPC UG CBT-1 2025-26 – 17 June 2026 Shift 3 · LPG reforms of 1991

Q28. What effect did reforms have on India's GDP growth rate?

  1. (a) Decreased slowly
  2. (b) Fluctuated unpredictably
  3. (c) Increased significantly
  4. (d) No change
Answer & solution

Answer: (c) Increased significantly

Economic Reforms and GDP Growth
Pre-1991: India's GDP growth rate was around 3-3.5% (Hindu rate of growth)
Post-1991 Reforms: LPG (Liberalization, Privatization, Globalization) introduced
Impact: GDP growth rate increased to 5-6% in 1990s
2000s onwards: Growth rate further accelerated to 7-9%
Conclusion: Economic reforms led to significant increase in GDP growth
Answer: Option 3 → Increased significantly
RRB NTPC UG CBT-1 2025-26 – 17 June 2026 Shift 3 · LPG reforms of 1991

Q29. What is a key feature of globalisation?

  1. (a) Promotion of only domestic industries within national boundaries
  2. (b) Separation of national economies from global economic systems
  3. (c) Reduction of international trade and cross-border economic linkages
  4. (d) Creation of networks across economic, social, and geographic boundaries
Answer & solution

Answer: (d) Creation of networks across economic, social, and geographic boundaries

Topic: Globalisation
Key Feature:Globalisation involves integration and interconnection of economies, societies, and cultures across the world.
It creates networks that transcend national boundaries through:
• International trade and investment
• Cross-border movement of goods, services, capital, and labor
• Cultural and technological exchange
Options 1, 2, 3 describe isolation and protectionism, which are opposite to globalisation.
Answer: Option 4 → Creation of networks across economic, social, and geographic boundaries
RRB NTPC UG CBT-1 2025-26 – 16 June 2026 Shift 1 · LPG reforms of 1991

Q30. Which of the following has NOT aided in Globalisation of the Indian economy?

  1. (a) Reduction of trade barriers
  2. (b) E-commerce
  3. (c) Emergence of multinational companies in India
  4. (d) Farm subsidies
Answer & solution

Answer: (d) Farm subsidies

Topic: Globalisation of Indian Economy
Factors that aided Globalisation:
• Reduction of trade barriers → Opened markets for international trade
• E-commerce → Connected Indian businesses to global markets
• MNCs in India → Brought foreign investment and technology
Farm subsidies:
• Domestic policy tool for supporting farmers
• Does NOT promote international economic integration
• Protects local agriculture, not global trade
Answer: Option 4 → Farm subsidies
RRB NTPC UG CBT-1 2025-26 – 16 June 2026 Shift 2 · Industrial Policy Resolutions (1948, 1956, 1991)

Q31. When was the Industrial Policy Resolution (IPR) adopted in India?

  1. (a) 1959
  2. (b) 1952
  3. (c) 1956
  4. (d) 1954
Answer & solution

Answer: (c) 1956

Industrial Policy Resolution (IPR) 1956
The IPR was adopted onApril 30, 1956by the Government of India.
Key Features:
• Classified industries into 3 categories (Schedule A, B, C)
• Emphasized public sector role in heavy industries
• Based on socialist pattern of society
This was the second IPR after 1948 and remained in force until 1991.
Answer: Option 3 → 1956
RRB NTPC UG CBT-1 2025-26 – 16 June 2026 Shift 2 · LPG reforms of 1991

Q32. Which sector in India saw major growth due to globalisation?

  1. (a) Mining
  2. (b) Handicrafts
  3. (c) IT and Services
  4. (d) Education
Answer & solution

Answer: (c) IT and Services

Topic: Impact of Globalisation on Indian Economy
Globalisation opened Indian markets to foreign investment and technology after 1991 economic reforms.
IT and Services sectorexperienced exponential growth due to:
• Outsourcing from developed countries
• Skilled English-speaking workforce
• Cost advantage and 24/7 service capability
India became global hub for software development, BPO, and IT services.
Answer: Option 3 → IT and Services
RRB NTPC UG CBT-1 2025-26 – 16 June 2026 Shift 3 · LPG reforms of 1991

Q33. The economic crisis of 1991 acted as a trigger for reforms. What was the key reason for India’s 1991 economic crisis?

  1. (a) Oil price drop
  2. (b) Increase in gold reserves
  3. (c) High fiscal and current account deficits
  4. (d) Agricultural surplus
Answer & solution

Answer: (c) High fiscal and current account deficits

India's 1991 Economic Crisis - Key Reason
The crisis was triggered bytwin deficits:
1. Fiscal Deficit:Government spending far exceeded revenue
Heavy borrowing led to mounting public debt
2. Current Account Deficit:Imports exceeded exports significantly
Gulf War (1990-91) caused oil prices to rise, worsening trade deficit
Result:Foreign exchange reserves fell to just 2 weeks of imports
India had to pledge gold to IMF for emergency loans
This crisis led toLPG reforms(Liberalization, Privatization, Globalization)
Answer: Option 3 → High fiscal and current account deficits
RRB NTPC UG CBT-1 2025-26 – 15 June 2026 Shift 1 · LPG reforms of 1991

Q34. The stabilisation measures introduced under India’s New Economic Policy (NEP) of 1991 were primarily aimed at achieving which of the following immediate objectives?

  1. (a) Encouraging foreign direct investment inflows and improving capital availability
  2. (b) Promoting disinvestment of public sector enterprises and reducing state control
  3. (c) Generating rural employment opportunities and strengthening agrarian livelihoods
  4. (d) Correcting balance of payment imbalances and controlling inflationary pressures
Answer & solution

Answer: (d) Correcting balance of payment imbalances and controlling inflationary pressures

Topic: New Economic Policy (NEP) 1991 - Stabilisation Measures
Context:India faced severe economic crisis in 1991 with:
• Foreign exchange reserves depleted (barely 2 weeks of imports)
• High fiscal deficit and mounting external debt
• Inflation rate crossing 13%
• Balance of Payment (BoP) crisis threatening default
Stabilisation Measures (Short-term):
• Devaluation of rupee to correct BoP deficit
• Fiscal consolidation to reduce government expenditure
• Monetary tightening to control inflation
• IMF loan conditionalities for immediate crisis management
Answer: Option 4 → Correcting balance of payment imbalances and controlling inflationary pressures
RRB NTPC UG CBT-1 2025-26 – 15 June 2026 Shift 3 · Public sector undertakings (Maharatna, Navratna, Miniratna)

Q35. When was Oil India Limited (OIL) incorporated as a company?

  1. (a) 1962
  2. (b) 1959
  3. (c) 1965
  4. (d) 1956
Answer & solution

Answer: (b) 1959

Topic: Oil India Limited (OIL)
OIL was incorporated as a company onFebruary 18, 1959.
It is India's second largest national oil and gas company.
Headquarters: Duliajan, Assam.
Answer: Option 2 → 1959
RRB NTPC UG CBT-1 2025-26 – 14 June 2026 Shift 2 · LPG reforms of 1991

Q36. Which new industries grew after 1991 due to economic reforms?

  1. (a) Railways and Defence
  2. (b) Banking and Information Technology
  3. (c) Oil and Gas only
  4. (d) Space and Nuclear
Answer & solution

Answer: (b) Banking and Information Technology

Economic Reforms of 1991 in India
The 1991 reforms introducedLiberalization, Privatization, and Globalization (LPG).
Key Changes:
• Opened economy to foreign investment and private sector
• Reduced government control over industries
• Encouraged service sector growth
Industries that grew rapidly:
•Banking:Private banks allowed, expansion of financial services
•Information Technology (IT):Software exports boomed, BPO sector emerged
• Telecom, Insurance, and Aviation also expanded
Answer: Option 2 → Banking and Information Technology
RRB NTPC UG CBT-1 2025-26 – 14 June 2026 Shift 2 · LPG reforms of 1991

Q37. What is the meaning of globalisation?

  1. (a) Economic isolation of countries from global markets
  2. (b) Reduction in the volume of international trade
  3. (c) Expansion of state ownership across major industries
  4. (d) Integration of a country’s economy with the world economy
Answer & solution

Answer: (d) Integration of a country’s economy with the world economy

Globalisation
Definition: Process of integration and interaction among people, companies, and governments worldwide.
Key Features:
• Free flow of goods, services, capital, and technology across borders
• Increased international trade and investment
• Economic interdependence among nations
Answer: Option 4 → Integration of a country's economy with the world economy
RRB NTPC UG CBT-1 2025-26 – 13 June 2026 Shift 3 · LPG reforms of 1991

Q38. Which of the following was a major goal of liberalisation under the 1991 economic reforms?

  1. (a) Ban foreign companies
  2. (b) Remove barriers to trade and industry
  3. (c) Increase government control over industries
  4. (d) Promote public sector dominance
Answer & solution

Answer: (b) Remove barriers to trade and industry

1991 Economic Reforms - Liberalisation Goals
Context: India faced severe economic crisis in 1991 (balance of payment crisis, high fiscal deficit).
Major goal ofLiberalisation:
•Reduce government controlover economy
•Remove licensing requirements(License Raj ended)
•Reduce trade barriers- lower import tariffs
•Encourage private sectorparticipation
•Allow foreign investmentand competition
Options 1, 3, 4 contradict liberalisation principles.
Answer: Option 2 → Remove barriers to trade and industry
SSC GD 2026 – 30 May 2026 Shift 3 · Make in India, Startup India and PLI

Q39. Which policy initiative of NITI Aayog is focused on promoting innovation and entrepreneurship?

  1. (a) Atal Innovation Mission (AIM)
  2. (b) Digital India Initiative
  3. (c) National Skill Development Mission
  4. (d) Startup India Scheme
Answer & solution

Answer: (a) Atal Innovation Mission (AIM)

Correct Answer: Atal Innovation Mission — AIM (Option 1)
The Atal Innovation Mission (AIM), established under NITI Aayog, is India's flagship initiative to promote a culture of innovation and entrepreneurship. Key programmes under AIM include Atal Tinkering Labs (ATLs) in schools, Atal Incubation Centres (AICs), and Atal New India Challenges. It is named after former PM Atal Bihari Vajpayee.
Why others are wrong:
- Digital India Initiative: Focuses on digital infrastructure and e-governance; launched by the Ministry of Electronics and IT, not primarily NITI Aayog.
- National Skill Development Mission: Focuses on vocational training and skilling, not specifically innovation.
- Startup India Scheme: Launched by DPIIT (Dept. for Promotion of Industry and Internal Trade) to support startups; distinct from AIM.
SSC GD 2026 – 30 May 2026 Shift 1 · LPG reforms of 1991

Q40. When was the FDI (Foreign Direct Investment) limit liberalized in India?

  1. (a) Year 1991
  2. (b) Year 1995
  3. (c) Year 2000
  4. (d) Year 2010
Answer & solution

Answer: (a) Year 1991

Correct Answer: Year 1991 — Option (a)
FDI limits in India were liberalized in 1991 as part of the historic economic reforms. About 1991 Economic Reforms and FDI Liberalization: Context: India faced a severe Balance of Payments ( BoP ) crisis in 1991; Foreign exchange reserves had fallen to just 2 weeks of imports; India had to pledge gold to the Bank of England and IMF to avoid default; The government (PM P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh) introduced sweeping reforms; LPG Reforms (1991): Liberalization — reducing government controls on industry; Privatization — disinvestment of public sector enterprises; Globalization — opening up to foreign trade and investment; FDI Liberalization (1991): Industrial Policy 1991 (announced July 24, 1991): Automatic approval for FDI up to 51% in 34 high-priority industries; Earlier, FERA (Foreign Exchange Regulation Act, 1973) restricted FDI to just 40% in most sectors; Foreign Technology Agreements were simplified; FIPB (Foreign Investment Promotion Board) established; Key FDI policy changes after 1991: 1999: FDI allowed up to 100% in many sectors; 2000: FDI through automatic route expanded significantly; FEMA (Foreign Exchange Management Act) replaced FERA in 2000; Further liberalization continued in subsequent years (insurance, defence , retail, etc.); About FERA (pre-1991): FERA 1973 severely restricted FDI — most sectors limited to 40%; Coca-Cola left India in 1977 rather than dilute its equity to 40%; IBM also left India in 1977 for the same reason; These companies returned after 1991 reforms.
Option (b) Year 1995 — Incorrect: FDI limits were NOT first liberalized in 1995; the major liberalization of FDI happened in 1991 as part of the new Industrial Policy announced by PM P.V. Narasimha Rao; while further FDI reforms continued in 1995 and beyond, the foundational liberalization occurred in 1991.
Option (c) Year 2000 — Incorrect: FDI limits were NOT first liberalized in 2000; the major FDI liberalization occurred in 1991; however, in 2000, FEMA (Foreign Exchange Management Act) replaced FERA, and further FDI liberalization happened; the first major liberalization was in 1991 with the new Industrial Policy allowing automatic FDI up to 51% in 34 priority sectors.
Option (d) Year 2010 — Incorrect: FDI limits were NOT first liberalized in 2010; the foundational FDI liberalization occurred in 1991; 2010 saw further sectoral liberalization (FDI in multi-brand retail was debated, defence FDI was enhanced) but the original liberalization happened in 1991 under the new Industrial Policy announced by PM Narasimha Rao and FM Manmohan Singh.
SSC GD 2026 – 30 May 2026 Shift 1 · MSME sector

Q41. What is the objective of the Credit Guarantee Fund for MSMEs and Startups?

  1. (a) Provide collateral-free guarantee support
  2. (b) Provide grants for research
  3. (c) Pension fund
  4. (d) Home loan security
Answer & solution

Answer: (a) Provide collateral-free guarantee support

Correct Answer: Provide collateral-free guarantee support — Option (a)
The Credit Guarantee Fund for MSMEs and Startups aims to provide collateral-free guarantee support. About Credit Guarantee Funds for MSMEs: Key scheme: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE); Established: 2000; By: Ministry of MSME and SIDBI (Small Industries Development Bank of India); Objective: Provide collateral-free credit (loans without security/guarantee) to micro and small enterprises; How it works: The CGTMSE provides a guarantee to banks/lending institutions for loans given to MSMEs without collateral; Banks are more willing to lend to MSMEs when they have a government-backed guarantee; This ensures credit flow to small businesses that don't have assets to pledge; For Startups: Fund of Funds for Startups (FFS): Under Startup India scheme; SEBI-registered Alternative Investment Funds (AIFs) provide equity funding; Credit Guarantee Scheme for Startups (CGSS): Provides guarantee cover for loans to DPIIT-recognized startups; Enables startups to get loans without collateral; Why collateral-free credit matters for MSMEs: Most MSMEs are small businesses that don't have enough assets to pledge as collateral; Without guarantee schemes, banks are reluctant to lend; Credit guarantee solves this 'missing collateral' problem; Benefits banks too — reduces their risk through government guarantee; About the MSME sector: India has approximately 6.3 crore MSMEs; Contributes about 30% to GDP; Employs about 11 crore people; Second largest employment sector after agriculture; Contributes about 45-50% to exports; MSME definition revised in 2020: Micro: Investment < Rs 1 crore, Turnover < Rs 5 crore; Small: Investment < Rs 10 crore, Turnover < Rs 50 crore; Medium: Investment < Rs 50 crore, Turnover < Rs 250 crore.
Option (b) Provide grants for research — Incorrect: Providing grants for research is NOT the objective of the Credit Guarantee Fund for MSMEs and Startups; research grants are provided by different agencies (DST, CSIR, DBT, etc.); the Credit Guarantee Fund specifically focuses on providing collateral-free credit guarantees to enable MSMEs and startups to access bank loans without pledging assets as security.
Option (c) Pension fund — Incorrect: A Pension fund is NOT the objective of the Credit Guarantee Fund for MSMEs and Startups; pension funds (like NPS, EPFO) serve a completely different purpose — providing retirement income to workers; the Credit Guarantee Fund is specifically designed to facilitate collateral-free lending to MSMEs and startups by providing guarantee cover to banks.
Option (d) Home loan security — Incorrect: Home loan security is NOT the objective of the Credit Guarantee Fund for MSMEs and Startups; home loan guarantees serve a completely different market segment (individual homebuyers); the Credit Guarantee Fund for MSMEs and Startups specifically targets business loans for micro, small, medium enterprises and startups, providing collateral-free guarantee support to encourage bank lending to this sector.
SSC GD 2026 – 27 May 2026 Shift 3 · LPG reforms of 1991

Q42. India's 1991 external sector reforms included a step towards trade liberalization. Which measure best exemplifies this policy change?

  1. (a) Imposing high tariffs for protection of domestic industries
  2. (b) Abolishing the import licensing system for most goods
  3. (c) Increasing quantitative restrictions on imports
  4. (d) Setting export quota to control foreign exchange reserves
Answer & solution

Answer: (b) Abolishing the import licensing system for most goods

Correct Answer: Abolishing the import licensing system for most goods — Option (b)
The abolition of the import licensing system for most goods was the key trade liberalization measure in India's 1991 external sector reforms. About India's 1991 External Sector Reforms: Context: India faced a severe balance of payments crisis in 1990-91; Foreign exchange reserves fell to just $1 billion (barely 2 weeks of import cover); India had to mortgage gold to get loans; The government initiated comprehensive economic reforms (LPG — Liberalization, Privatization, Globalization); External Sector Reforms: Abolition of Import Licensing: Before 1991: Virtually all imports required a license under the Imports and Exports (Control) Act, 1947; The 'Positive List' required specific permission; After 1991: Import licensing was abolished for most goods; The 'Negative List' approach — only specific prohibited/restricted items need licensing; This was the most significant trade liberalization measure; Devaluation of the Rupee: The Indian rupee was devalued by about 18-19% in July 1991; Made exports cheaper and imports more expensive; Reduced Current Account Deficit; Reduction of Import Tariffs: Import tariffs (customs duties) were gradually reduced from very high levels (up to 300%) to more moderate levels; Convertibility on Current Account: India moved toward current account convertibility; Full convertibility allowed for trade-related transactions; QR (Quantitative Restrictions) Removal: Quantitative restrictions on most goods were gradually removed; Export promotion: EXIM policy liberalized; Special Economic Zones established.
Option (a) Imposing high tariffs for protection of domestic industries — Incorrect: Imposing HIGH tariffs is a PROTECTIONIST measure — the OPPOSITE of trade liberalization; the 1991 reforms actually aimed to REDUCE import tariffs (which were very high before 1991, up to 300%); high tariffs protect domestic industries by making imports expensive, which is contrary to the liberalization objective.
Option (c) Increasing quantitative restrictions on imports — Incorrect: Increasing quantitative restrictions (QRs) on imports is a PROTECTIONIST measure — the opposite of trade liberalization; the 1991 reforms REMOVED quantitative restrictions on most goods; QRs limit the physical quantity of goods that can be imported, which restricts trade; the 1991 reforms moved AWAY from QRs, not toward them.
Option (d) Setting export quota to control foreign exchange reserves — Incorrect: Setting export quotas would RESTRICT exports — which is counter-productive to trade liberalization; the 1991 reforms actually promoted exports and moved toward greater export freedom; controlling foreign exchange reserves through export quotas would reduce foreign exchange earnings, which is the opposite of what India needed in 1991.
SSC GD 2026 – 26 May 2026 Shift 2 · LPG reforms of 1991

Q43. Which trend shows that the 1991 reforms improved the stability of India's external sector?

  1. (a) Continuous decline in foreign exchange reserves after 1991
  2. (b) Foreign debt doubled in the 1990s
  3. (c) Strong growth in foreign exchange reserves over time
  4. (d) Decline in foreign investment flow
Answer & solution

Answer: (c) Strong growth in foreign exchange reserves over time

Correct Answer: Strong growth in foreign exchange reserves over time — Option (c)
The strong growth in foreign exchange (forex) reserves over time is the best indicator that the 1991 reforms improved the stability of India's external sector. About India's 1991 Economic Crisis and Reforms: Pre-reform crisis (1991): India's forex reserves fell to just about $1.2 billion in January 1991 — barely enough for 3 weeks of imports; India had to mortgage 67 tonnes of gold with the Bank of England and Bank of Japan to secure emergency loans; The country was on the verge of defaulting on its international debt; Reforms initiated: Finance Minister Manmohan Singh (under PM Narasimha Rao) introduced landmark liberalization, privatization, and globalization (LPG) reforms; Key measures: Devaluation of the rupee (made exports competitive), Industrial licensing abolished, FDI liberalized, Import restrictions reduced, Current account convertibility introduced; Impact on external sector: Foreign exchange reserves grew steadily after 1991; By 2004, India's forex reserves crossed $100 billion; Today (as of 2026), India's forex reserves exceed $600 billion; FDI and FII inflows increased significantly after reforms; Export growth accelerated; Current account became more stable; The strong and steady increase in forex reserves directly shows improved external sector stability — from near-bankruptcy to one of the world's largest forex reserve holders.
Option (a) Continuous decline in foreign exchange reserves after 1991 — Incorrect: This is the OPPOSITE of what happened — forex reserves INCREASED significantly after the 1991 reforms; the pre-reform period saw a decline, not the post-reform period. The candidate selected this incorrect option.
Option (b) Foreign debt doubled in the 1990s — Incorrect: While India did have external debt challenges, a doubling of foreign debt would indicate WORSENING external stability, not improvement; the indicator of improvement is the strong growth in forex reserves and increased foreign investment inflows.
Option (d) Decline in foreign investment flow — Incorrect: The 1991 reforms specifically aimed at attracting MORE foreign investment by liberalizing FDI rules and opening up the Indian economy; foreign investment actually INCREASED after 1991 — a decline would indicate failure, not success, of the reforms.
SSC GD 2026 – 26 May 2026 Shift 3 · LPG reforms of 1991

Q44. Which external event in the early 1990s worsened India's Balance of Payments ( BoP ) crisis?

  1. (a) Asian financial crisis
  2. (b) Gulf War and rising oil prices
  3. (c) Fall of the Soviet Union
  4. (d) Decline in agricultural exports
Answer & solution

Answer: (b) Gulf War and rising oil prices

Correct Answer: Gulf War and rising oil prices — Option (b)
The Gulf War (1990-91) and the consequent rise in global oil prices were the key external events that worsened India's Balance of Payments crisis in the early 1990s. About India's 1991 BoP Crisis and the Gulf War Connection: Background — India's pre-crisis vulnerabilities: India had been running large fiscal deficits through the 1980s; Increasing external borrowings; Import-dependent economy (especially for oil); Large trade deficits; Gulf War impact on India (1990-91): Oil price surge: When Iraq invaded Kuwait in August 1990, global oil prices nearly DOUBLED (from ~$17 per barrel to ~$32+ per barrel); India imported about 70-80% of its crude oil needs — this dramatically increased India's oil import bill; Remittances dried up: About 1 million Indian workers were employed in Kuwait and Iraq; the Gulf War forced mass evacuation of these workers; India lost substantial remittances from these workers; Export markets disrupted: Trade with Gulf countries collapsed; Confidence crisis: Foreign investors and creditors became nervous about India's ability to repay debts; Combined effect: India's forex reserves fell from about $3 billion in August 1990 to just $1.2 billion by January 1991 — barely 3 weeks of import cover; India had to pledge 67 tonnes of gold with Bank of England and Union Bank of Switzerland to secure emergency loans; This forced the 1991 economic liberalization reforms; About the Asian Financial Crisis: Occurred in 1997-98 — NOT in the early 1990s; it was AFTER India's 1991 reforms.
Option (a) Asian financial crisis — Incorrect: The Asian financial crisis occurred in 1997-98 — it started in Thailand and spread to other East/Southeast Asian economies; this was AFTER India's 1991 reforms, not a cause of the early 1990s BoP crisis.
Option (c) Fall of the Soviet Union — Incorrect: While the fall of the Soviet Union (December 1991) did disrupt India-Soviet trade (India had significant trade with the USSR under rupee-ruble arrangements), the PRIMARY external cause of India's early 1990s BoP crisis was the Gulf War and rising oil prices, not the Soviet collapse.
Option (d) Decline in agricultural exports — Incorrect: While India did face trade challenges, a decline in agricultural exports was NOT the primary external factor that worsened India's BoP crisis in the early 1990s; the Gulf War and consequent oil price spike and loss of Gulf remittances were the critical external factors. The candidate selected this incorrect option.
SSC GD 2026 – 22 May 2026 Shift 1 · Infrastructure sectors

Q45. Which of the following is a driving enabler of the PM Gati Shakti initiative?
I. Public Transport
II. Logistics Infrastructure

  1. (a) Only I
  2. (b) Only II
  3. (c) Both I and II
  4. (d) Neither I nor II
Answer & solution

Answer: (c) Both I and II

Correct Answer: Both I and II — Option (c)
Both Public Transport and Logistics Infrastructure are driving enablers of the PM Gati Shakti initiative. About PM Gati Shakti — National Master Plan: Launched: October 13, 2021 by Prime Minister Narendra Modi on his birthday; Full name: PM Gati Shakti — National Master Plan for Multi-modal Connectivity; Objective: To provide multimodal connectivity infrastructure to various economic zones; It integrates 16 Ministries including Railways, Roads, Ports, Waterways, Aviation, Telecom, etc. on a single GIS-based digital platform; Seven Engines of PM Gati Shakti: Roads, Railways, Airports, Ports, Mass Transport (Public Transport), Waterways, and Logistics Infrastructure; All seven engines are considered pillars/enablers of the initiative; Statement I — Public Transport is a driving enabler: Mass Transport (metro rails, bus systems, last-mile connectivity) is one of the seven engines of PM Gati Shakti; Statement II — Logistics Infrastructure is a driving enabler: Logistics Infrastructure (warehousing, cold chains, Multimodal Logistics Parks, integrated ports) is one of the seven engines; Significance: PM Gati Shakti aims to reduce logistics costs (currently 13-14% of GDP — target to reduce to below 8%), enhance export competitiveness, and create employment.
Option (a) Only I — Incorrect: Both Public Transport AND Logistics Infrastructure are driving enablers of PM Gati Shakti — it has seven engines including mass transport and logistics; selecting 'Only I' is incomplete.
Option (b) Only II — Incorrect: Both are enablers — public transport is one of the seven engines (mass transport), and logistics infrastructure is another; selecting 'Only II' is incomplete.
Option (d) Neither I nor II — Incorrect: Both Public Transport and Logistics Infrastructure ARE explicitly listed as driving enablers (engines) of the PM Gati Shakti initiative; 'Neither I nor II' is factually incorrect.
SSC GD 2026 – 18 May 2026 Shift 1 · Industrial Policy Resolutions (1948, 1956, 1991)

Q46. What was the objective of the New Industrial Policy of 1980?

  1. (a) Promote small-scale modernisation and technological inclusion
  2. (b) Close private industries
  3. (c) Maintain strict control on the public sector
  4. (d) Nationalise major industries
Answer & solution

Answer: (a) Promote small-scale modernisation and technological inclusion

Correct Answer: Promote small-scale modernisation and technological inclusion — Option (a)
The New Industrial Policy of 1980 (under Prime Minister Indira Gandhi) had the primary objective of promoting small-scale modernisation and technological inclusion. Key features included: encouraging modernisation and upgradation of technology in small-scale industries; promoting technological self-reliance; removing unnecessary bureaucratic controls ( licence -permit raj) to improve industrial efficiency; promoting the growth of ancillary industries; encouraging cost reduction and higher productivity; and promoting cottage and small-scale industries. It also gave thrust to the concept of 'economic federalism' by distributing industrial growth across regions and promoting backward area development.
Option (b) Close private industries — Incorrect: The 1980 Industrial Policy did not aim to close private industries; it encouraged modernisation and efficiency.
Option (c) Maintain strict control on the public sector — Incorrect: While the government maintained a role in public sector enterprises, the 1980 policy's primary focus was on modernisation and technology adoption, not stricter controls.
Option (d) Nationalise major industries — Incorrect: Major nationalisations (like banks in 1969, coal in 1973) had already occurred; the 1980 policy focused on modernisation and technology, not further nationalisation .
SSC GD 2026 – 18 May 2026 Shift 2 · Make in India, Startup India and PLI

Q47. In February 2025, the Government of India celebrated 6 years of the SWAYATT initiative. What does SWAYATT stand for?

  1. (a) Strengthening Women and Youth Against Trade Threats
  2. (b) Startups, Women and Youth Advantage Through e-Transactions
  3. (c) Supporting Workers and Young Adults Through Training
  4. (d) Sustainable Work and Youth Alliance for Technological Trade
Answer & solution

Answer: (b) Startups, Women and Youth Advantage Through e-Transactions

Correct Answer: Startups, Women and Youth Advantage Through e-Transactions — Option (b)
SWAYATT stands for 'Startups, Women and Youth Advantage Through e-Transactions.' It is an initiative launched by the Government e-Marketplace ( GeM ) portal in February 2019 with the objective of promoting and onboarding Startups, Women Entrepreneurs, and Youth on the GeM platform. GeM (Government e-Marketplace) is a digital platform for procurement of goods and services by government ministries and departments. SWAYATT aims to enable these special categories of sellers — startups, women-led businesses, and youth entrepreneurs — to access the large government procurement market through e-transactions, thereby promoting inclusive economic growth, women's entrepreneurship, and youth-led startups. In February 2025, the Government of India celebrated 6 years of this initiative.
Option (a) Strengthening Women and Youth Against Trade Threats — Incorrect: This is a fabricated expansion; SWAYATT stands for Startups, Women and Youth Advantage Through e-Transactions.
Option (c) Supporting Workers and Young Adults Through Training — Incorrect: This expansion is incorrect; SWAYATT is a GeM initiative for e-transactions, not a worker training programme .
Option (d) Sustainable Work and Youth Alliance for Technological Trade — Incorrect: This is not the correct expansion of SWAYATT; the correct full form is Startups, Women and Youth Advantage Through e-Transactions.
SSC GD 2026 – 18 May 2026 Shift 3 · LPG reforms of 1991

Q48. What was the positive impact of liberalisation and globalisation
on Indian industry?

  1. (a) Decline in efficiency due to competition
  2. (b) Access to advanced technology and larger markets
  3. (c) Increased monopoly of Indian firms
  4. (d) Complete withdrawal of the state from infrastructure
Answer & solution

Answer: (b) Access to advanced technology and larger markets

Correct Answer: Access to advanced technology and larger markets — Option (b)
The liberalisation and globalisation of the Indian economy (especially after the 1991 New Economic Policy — LPG reforms) had several positive impacts on Indian industry: Access to advanced foreign technology, machinery, and management practices improved production quality and efficiency; Indian companies gained access to global markets, expanding their customer base far beyond domestic boundaries; Foreign Direct Investment (FDI) brought capital inflows and technology transfer; Indian firms became globally competitive and several became multinational corporations (e.g., Tata, Infosys, Wipro); The IT and services sectors flourished due to global integration; Consumer choice increased with quality international products entering India.
Option (a) Decline in efficiency due to competition — Incorrect: While competition increased, it actually improved efficiency as Indian firms had to upgrade to survive; a decline in efficiency was not a positive impact.
Option (c) Increased monopoly of Indian firms — Incorrect: Liberalisation reduced monopolies (especially those protected under the MRTP Act) rather than increasing them; more players entered the market.
Option (d) Complete withdrawal of the state from infrastructure — Incorrect: The government did not completely withdraw from infrastructure; it continued to invest in infrastructure while opening up to private participation.
SSC GD 2026 – 18 May 2026 Shift 3 · Classification of industries (size, ownership, raw material)

Q49. Which of the following statements about chemical-based industries is correct?
I. Synthetic fibre is an example of a chemical-based industry.
II. Salt, sulphur and potash industries also use natural minerals.

  1. (a) Only I
  2. (b) Only II
  3. (c) Both I and II
  4. (d) Neither I nor II
Answer & solution

Answer: (c) Both I and II

Correct Answer: Both I and II — Option (c)
Both statements are correct: Statement I — Synthetic fibre is indeed an example of a chemical-based industry. Synthetic fibres such as nylon, polyester, acrylic, and rayon are manufactured through chemical processes ( polymerisation ) using petrochemicals and other raw materials. The synthetic fibre industry is a major segment of the chemical industry; Statement II — Salt, sulphur and potash industries also use natural minerals as their primary raw materials. Salt (sodium chloride) is obtained from sea water or rock salt deposits; sulphur is mined from natural deposits or recovered from petroleum refining; potash is extracted from mineral deposits. These industries process naturally occurring minerals using chemical processes, making them part of the chemical-based industry sector.
Option (a) Only I — Incorrect: Both Statement I (synthetic fibre ) and Statement II (salt, sulphur , potash) are correct; 'Only I' is an incomplete answer.
Option (b) Only II — Incorrect: Both statements are correct; 'Only II' is incomplete as Statement I about synthetic fibre is also accurate.
Option (d) Neither I nor II — Incorrect: Both statements are factually correct about chemical-based industries.
RRB NTPC UG CBT-1 2025-26 – 9 May 2026 Shift 1 · LPG reforms of 1991

Q50. The main aim of globalisation in India was to____.

  1. (a) Restrict and close foreign trade completely
  2. (b) Promote only self-sufficiency within the nation
  3. (c) Increase and maintain higher trade barriers
  4. (d) Integrate Indian economy with global markets
Answer & solution

Answer: (d) Integrate Indian economy with global markets

Topic: Globalisation in India (1991 Economic Reforms)
Key Facts:
1. Globalisation aimed to open Indian economy to world markets
2. Reduced trade barriers and import restrictions
3. Encouraged foreign investment and technology transfer
4. Integration with global economy for growth and competition
Options 1, 2, 3 represent opposite policies (protectionism)
Answer: Option 4 → Integrate Indian economy with global markets
RRB NTPC UG CBT-1 2025-26 – 9 May 2026 Shift 2 · Make in India, Startup India and PLI

Q51. The ‘Make in India’ initiative launched by the Government of India in 2014 is primarily focused on which of the following?

  1. (a) enhancing tourism
  2. (b) improving healthcare facilities
  3. (c) promoting agricultural exports
  4. (d) boosting manufacturing and job creation
Answer & solution

Answer: (d) boosting manufacturing and job creation

Make in India Initiative (2014)
Launched: September 25, 2014 by PM Narendra Modi
Primary Objective: Transform India into a global manufacturing hub
Key Focus Areas:
• Boost manufacturing sector growth
• Create employment opportunities
• Attract foreign direct investment (FDI)
• Enhance ease of doing business
Answer: Option 4 → boosting manufacturing and job creation
SSC GD 2026 – 8 May 2026 Shift 1 · LPG reforms of 1991

Q52. By 1990, India's external debt had become:

  1. (a) Zero
  2. (b) Negligible
  3. (c) Manageable
  4. (d) Very high, leading to crisis
Answer & solution

Answer: (d) Very high, leading to crisis

Correct Answer: Very high, leading to crisis — Option (d)
By 1990, India's external debt had become very high, leading to the Balance of Payments (BoP) crisis of 1990–91. India's foreign exchange reserves had fallen to a critically low level (enough for only about 2–3 weeks of imports), and the country was unable to service its external debt obligations. India had to pledge 67 tonnes of gold to the Bank of England and 47 tonnes to the Union Bank of Switzerland to secure emergency loans from the IMF. This crisis forced India to initiate sweeping economic reforms in 1991 under Finance Minister Dr. Manmohan Singh, leading to liberalization, privatization, and globalization (LPG reforms).
Option (a) Zero — Incorrect: India's external debt was very high by 1990, not zero.
Option (b) Negligible — Incorrect: The debt was at a crisis-inducing level, far from negligible.
Option (c) Manageable — Incorrect: The debt was not manageable — India had to pledge gold and approach the IMF for emergency assistance, indicating a severe crisis.
RRB NTPC UG CBT-1 2025-26 – 8 May 2026 Shift 2 · LPG reforms of 1991

Q53. What was the impact of the 1990s' reforms on India's economic growth?

  1. (a) They led to more sustainable growth.
  2. (b) They caused economic instability.
  3. (c) They resulted in economic stagnation.
  4. (d) They had no significant impact.
Answer & solution

Answer: (a) They led to more sustainable growth.

1990s Economic Reforms in India
Key Reforms:Liberalization, Privatization, Globalization (LPG)
Major Changes:
• Industrial licensing abolished
• Foreign investment encouraged
• Trade barriers reduced
• Public sector monopolies ended
Impact on Growth:
• GDP growth rate increased from ~3.5% to 6-7%
• Foreign exchange reserves improved significantly
• Integration with global economy
Answer: Option 1 → They led to more sustainable growth.
RRB NTPC UG CBT-1 2025-26 – 8 May 2026 Shift 3 · LPG reforms of 1991

Q54. Why were tax incentives provided to foreign investors during the 1991 economic reform period in India?

  1. (a) To increase tax revenue for the government
  2. (b) To promote domestic monopolies
  3. (c) To discourage foreign investment
  4. (d) To attract foreign investment
Answer & solution

Answer: (d) To attract foreign investment

1991 Economic Reforms in India
Context: India faced a severe balance of payments crisis in 1991, leading to comprehensive economic liberalization.
Tax Incentives to Foreign Investors:
• Reduced corporate tax rates for foreign companies
• Tax holidays for specific sectors and SEZs
• Exemptions on import duties for capital goods
Primary Objective:
To make India an attractive destination for Foreign Direct Investment (FDI) and bring in foreign capital, technology, and expertise.
Answer: Option 4 → To attract foreign investment
RRB NTPC UG CBT-1 2025-26 – 7 May 2026 Shift 3 · Industrial Policy Resolutions (1948, 1956, 1991)

Q55. The Industrial Policy of 1991 led to:

  1. (a) Decrease in private sector participation
  2. (b) Abolishing industrial licensing for most industries
  3. (c) Nationalization of key industries
  4. (d) Establishment of public sector monopolies
Answer & solution

Answer: (b) Abolishing industrial licensing for most industries

Industrial Policy 1991 - Liberalization Era
Key Reform:Delicensing of Industries
Industrial licensing abolished for all industries except:
• Alcohol, Cigarettes, Hazardous chemicals
• Industrial explosives, Electronics, Aerospace, Drugs
Other Major Changes:
• Private sector allowed in most areas
• Public sector reserved areas reduced from 17 to 8
• Foreign investment liberalized
This marked shift fromLicense Raj to Economic Liberalization
Answer: Option 2 → Abolishing industrial licensing for most industries
SSC GD 2026 – 5 May 2026 Shift 1 · LPG reforms of 1991

Q56. Which trend shows that the 1991 economic reforms led to
' growth with inequality'?

  1. (a) Rural poverty declined faster than urban poverty
  2. (b) Agricultural employment grew faster than industrial employment
  3. (c) Notable decline in the informal sector
  4. (d) Urban service sector expanded rapidly while agriculture stagnated
Answer & solution

Answer: (d) Urban service sector expanded rapidly while agriculture stagnated

Correct Answer: Urban service sector expanded rapidly while agriculture stagnated — Option (d)
The 1991 economic liberalization reforms in India led to rapid growth in the urban services sector (IT, finance, telecommunications, retail) while the agricultural sector remained largely stagnant and did not benefit equally. This created a widening gap between the urban middle class and the rural agrarian population, illustrating 'growth with inequality.' The benefits of liberalization were concentrated in urban areas and certain sectors, bypassing rural and informal workers.
Option (a) Rural poverty declined faster than urban poverty — Incorrect: Post-1991 reforms primarily benefited urban areas; rural poverty reduction was slower, not faster.
Option (b) Agricultural employment grew faster than industrial — Incorrect: Post-1991 reforms spurred industrial and services growth, not agricultural employment.
Option (c) Notable decline in the informal sector — Incorrect: The informal sector remained large and even grew after 1991; there was no notable decline.
SSC GD 2026 – 5 May 2026 Shift 1 · MSME sector

Q57. Which scheme specifically supports MSMEs for technology upgradation?

  1. (a) PM Employment Generation Programme (PMEGP)
  2. (b) Credit Linked Capital Subsidy Scheme (CLCSS)
  3. (c) Make in India scheme
  4. (d) Atal Innovation Mission
Answer & solution

Answer: (b) Credit Linked Capital Subsidy Scheme (CLCSS)

Correct Answer: Credit Linked Capital Subsidy Scheme (CLCSS) — Option (b)
The Credit Linked Capital Subsidy Scheme (CLCSS) is specifically designed to facilitate technology upgradation of Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector. Under CLCSS, an upfront capital subsidy of 15% is provided on institutional credit (up to Rs. 1 crore) for induction of well-established and improved technologies. The scheme helps MSMEs modernize plant and machinery and adopt better production processes.
Option (a) PM Employment Generation Programme (PMEGP) — Incorrect: PMEGP focuses on creating employment opportunities through establishing micro enterprises; it is not specifically for technology upgradation of MSMEs.
Option (c) Make in India scheme — Incorrect: Make in India is a broad national initiative to promote manufacturing and attract investment; it is not specifically a technology subsidy scheme for MSMEs.
Option (d) Atal Innovation Mission — Incorrect: Atal Innovation Mission promotes innovation and entrepreneurship through Atal Tinkering Labs and incubators; it is not specifically for MSME technology upgradation.
SSC GD 2026 – 5 May 2026 Shift 2 · LPG reforms of 1991

Q58. Which trade-related policy reform was initiated in 1991 to promote India's export growth?

  1. (a) Import substitution strategy
  2. (b) Export-Import Policy Framework
  3. (c) Economic liberalization policy
  4. (d) Green Revolution strategy
Answer & solution

Answer: (c) Economic liberalization policy

Correct Answer: Economic liberalization policy — Option (c)
In 1991, facing a severe balance of payments crisis, India initiated a comprehensive Economic Liberalization Policy under Finance Minister Manmohan Singh and Prime Minister P.V. Narasimha Rao. This included dismantling import licensing (LPQ — Licensing, Permit, Quota Raj), reducing customs duties, allowing foreign direct investment, devaluing the rupee, and making the current account convertible. These reforms opened India to international trade, boosted exports, and integrated India into the global economy.
Option (a) Import substitution strategy — Incorrect: Import substitution was the pre-1991 policy that was replaced by liberalization; it restricted imports rather than promoting exports.
Option (b) Export-Import Policy Framework — Incorrect: While EXIM Policy was part of the trade reform, the overarching reform that promoted export growth was the Economic Liberalization Policy of 1991.
Option (d) Green Revolution strategy — Incorrect: The Green Revolution (1960s–70s) was an agricultural transformation strategy focused on food grain production, not trade or export policy reform.
SSC GD 2026 – 5 May 2026 Shift 3 · Make in India, Startup India and PLI

Q59. What is the primary objective of the Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission)?

  1. (a) Encouraging imports
  2. (b) Promoting self-reliance in all sectors
  3. (c) Subsidizing oil prices
  4. (d) Reducing food wastage
Answer & solution

Answer: (b) Promoting self-reliance in all sectors

Correct Answer: Promoting self-reliance in all sectors — Option (b)
Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission) was launched by Prime Minister Narendra Modi in May 2020 (during the COVID-19 pandemic) with the primary objective of making India self-reliant in all sectors — including manufacturing, technology, agriculture, defence , healthcare, and infrastructure. The mission aims to build domestic production capacity, reduce dependence on imports (especially from China), promote local manufacturing ('Vocal for Local'), and enhance India's competitiveness globally. It is supported by five pillars: Economy, Infrastructure, System, Vibrant Demography, and Demand.
Option (a) Encouraging imports — Incorrect: Atmanirbhar Bharat specifically aims to REDUCE dependence on imports by building domestic manufacturing capability; encouraging imports is the opposite of its objective.
Option (c) Subsidizing oil prices — Incorrect: Subsidizing oil prices is a specific economic policy; it is not the primary objective of Atmanirbhar Bharat Abhiyan.
Option (d) Reducing food wastage — Incorrect: While reducing food wastage is a worthwhile goal, it is not the primary objective of the Atmanirbhar Bharat Abhiyan.
SSC GD 2026 – 30 April 2026 Shift 1 · Industrial Policy Resolutions (1948, 1956, 1991)

Q60. How many categories did the Industrial Policy Resolution of 1956 classify industries into?

  1. (a) Two
  2. (b) Three
  3. (c) Four
  4. (d) Five
Answer & solution

Answer: (b) Three

Correct Answer: Three — Option (b)
The Industrial Policy Resolution (IPR) of 1956 classified industries into THREE categories (Schedules A, B, and C). The three categories: Schedule A (State monopoly industries — 17 industries): These industries were to be exclusively owned and operated by the State (Central Government); Examples: Heavy industries like iron and steel, heavy machinery, coal, petroleum, atomic energy, railways, air transport, broadcasting, etc.; New establishments in these sectors could only be made by the State. Schedule B (Mixed sector — 12 industries): These industries could have private sector participation alongside the public sector; However, the State would progressively own more units in these industries; Examples: Chemicals (excluding heavy chemicals), fertilizers, aluminium , machine tools, road transport, sea transport, etc. Schedule C (Private sector industries): All remaining industries not included in Schedules A and B were left to the private sector; These could be set up by private entrepreneurs, subject to regulation. Significance of IPR 1956: Known as the 'Economic Constitution of India'; It shaped India's mixed economy model; It was strongly influenced by socialist principles and Nehru's vision of the state playing a dominant role in heavy industries.
Option (a) Two — Incorrect: The IPR 1956 classified industries into THREE categories (Schedules A, B, and C), not two; two-category classification would not have captured the mixed/intermediate sector.
Option (c) Four — Incorrect: The IPR 1956 classified industries into three categories (Schedules A, B, C); there were not four categories in the 1956 classification.
Option (d) Five — Incorrect: The Industrial Policy Resolution of 1956 classified industries into three (not five) schedules; five categories were not part of the 1956 IPR framework.
SSC GD 2026 – 30 April 2026 Shift 1 · MSME sector

Q61. Which sector of the Indian economy is the second largest
source of employment after agriculture?

  1. (a) Large-scale capital-intensive industrial enterprises
  2. (b) Micro, Small and Medium Enterprises (MSMEs)
  3. (c) Information Technology and Software Services
  4. (d) Transportation and logistics infrastructure
Answer & solution

Answer: (b) Micro, Small and Medium Enterprises (MSMEs)

Correct Answer: Micro, Small and Medium Enterprises (MSMEs) — Option (b)
After agriculture, the MSME (Micro, Small and Medium Enterprises) sector is the second largest source of employment in India. Key facts about MSMEs and employment: Employment: MSMEs employ approximately 11 crore (110 million) people in India — making it the second largest employer after agriculture (which employs about 42-45% of the workforce); Number of MSMEs: There are over 6 crore MSMEs registered in India; Economic contribution: MSMEs contribute approximately 30% of India's GDP and around 48% of India's exports; Sectors covered: MSMEs operate across food processing, textiles, leather, chemicals, engineering, electronics, handicrafts, services, and many other sectors; Why MSMEs employ so many: They are labour-intensive (unlike large capital-intensive industries); they have low capital requirements enabling widespread establishment; they operate across rural and urban areas; Government support: Schemes like PMEGP, Mudra loans, Credit Guarantee scheme, and the MSME Ministry actively support this sector.
Option (a) Large-scale capital-intensive industrial enterprises — Incorrect: While large industries are important, they are CAPITAL-intensive (not labour-intensive ), meaning they employ fewer workers per unit of capital; MSMEs employ far more people than large capital-intensive enterprises in India.
Option (c) Information Technology and Software Services — Incorrect: India's IT sector is a major foreign exchange earner and high-skill employer, but it directly employs approximately 50 lakh (5 million) people — far fewer than MSMEs (11 crore); IT is not the second largest employer after agriculture. The candidate selected this incorrect option.
Option (d) Transportation and logistics infrastructure — Incorrect: While transportation and logistics is an important employer, MSMEs are the second largest source of employment in India after agriculture; the transportation sector employs far fewer people than the MSME sector.
SSC GD 2026 – 30 April 2026 Shift 3 · Public sector undertakings (Maharatna, Navratna, Miniratna)

Q62. Which of the following most accurately reflects the fundamental orientation of public sector industries in India?

  1. (a) They are primarily export-driven enterprises
  2. (b) They function with the exclusive motive of profit maximization
  3. (c) They are predominantly under foreign ownership and control
  4. (d) They prioritize wider socio-economic developmental objectives
Answer & solution

Answer: (d) They prioritize wider socio-economic developmental objectives

Correct Answer: They prioritize wider socio-economic developmental objectives — Option (d)
Public sector industries (PSUs — Public Sector Undertakings) in India were established with the primary objective of achieving socio-economic development — including self-reliance in key industries, balanced regional development, employment generation, and providing essential goods/services at affordable prices. The Industrial Policy Resolution of 1956 emphasized the role of the public sector in national development rather than profit alone.
Option (a) — Incorrect: PSUs are not primarily set up for export promotion; their orientation is domestic development.
Option (b) — Incorrect: Profit maximization is the goal of private enterprises; PSUs balance social welfare with commercial viability.
Option (c) — Incorrect: PSUs are under government (Indian state) ownership and control, not foreign ownership.
SSC GD 2026 – 29 April 2026 Shift 2 · Make in India, Startup India and PLI

Q63. The Make in India initiative was launched in:

  1. (a) 2010
  2. (b) 2012
  3. (c) 2014
  4. (d) 2015
Answer & solution

Answer: (c) 2014

Correct Answer: 2014 — Option (c)
The Make in India initiative was officially launched by Prime Minister Narendra Modi on September 25, 2014. Key facts about Make in India: Launched at Vigyan Bhawan, New Delhi, on September 25, 2014; The initiative aims to transform India into a global manufacturing hub and encourage both domestic and foreign companies to manufacture their products in India; The logo/mascot of Make in India is a lion made of gear wheels — representing manufacturing, strength, and the national animal of India; 25 sectors were initially identified as focus areas (expanded to 27 sectors), including automobiles, defense, electronics, food processing, pharmaceuticals, textiles, IT & BPM, aerospace, ports, etc.; The initiative promotes ease of doing business, infrastructure development, FDI (Foreign Direct Investment) attraction, and skill development; It complements other government initiatives like Skill India, Digital India, Startup India, and Smart Cities Mission.
Option (a) 2010 — Incorrect: Make in India was not launched in 2010; it was launched in 2014 after the Modi government came to power in May 2014.
Option (b) 2012 — Incorrect: 2012 was during the UPA-II government's tenure; Make in India was launched in 2014 by the newly elected NDA government under PM Narendra Modi.
Option (d) 2015 — Incorrect: While several related initiatives and programs under Make in India were expanded or launched in 2015, the Make in India initiative itself was formally launched on September 25, 2014. The candidate incorrectly selected this option.
SSC GD 2026 – 28 April 2026 Shift 3 · Industrial Policy Resolutions (1948, 1956, 1991)

Q64. Which industrial policy prominently promoted small-scale industries?

  1. (a) Industrial Policy 1948
  2. (b) Industrial Policy 1956
  3. (c) Industrial Policy 1977
  4. (d) Industrial Policy 1980
Answer & solution

Answer: (c) Industrial Policy 1977

Correct Answer: Industrial Policy 1977 — Option (c)
The Industrial Policy of 1977 (announced by the Janata Party government under PM Morarji Desai) is specifically known for its strong and explicit emphasis on promoting small-scale, cottage, and village industries. Key features of the Industrial Policy 1977: It classified industries into three categories — Cottage and Household industries, Small-scale industries, and Large-scale industries; It significantly expanded the list of items reserved exclusively for small-scale sector production; It emphasized 'people-oriented' and ' labour-intensive ' development over capital-intensive large industry; It promoted district industries centres (DICs) to provide support to small enterprises at the grassroots level; It aimed to generate maximum employment and bring industries to rural areas. This policy represented a philosophical shift from the heavy-industry-focused approach of the 1956 policy.
Option (a) Industrial Policy 1948 — Incorrect: The 1948 Industrial Policy was India's first policy statement after independence, focusing on classifying industries into government and private domains; while it mentioned small industries, it was not specifically known for prominently promoting them.
Option (b) Industrial Policy 1956 — Incorrect: The 1956 Industrial Policy (based on the Mahalanobis model) is known for its emphasis on heavy industries and the expansion of the public sector; it was not the policy primarily known for promoting small-scale industries.
Option (d) Industrial Policy 1980 — Incorrect: The 1980 Industrial Policy (under PM Indira Gandhi's returned Congress government) partially reversed the 1977 policy and focused more on modernization, consolidation, and preventing sick units; it was not primarily known for promoting small-scale industries like the 1977 policy.
SSC GD 2026 – 27 April 2026 Shift 2 · MSME sector

Q65. What was the main drawback of small-scale industry reservation policies?

  1. (a) They encouraged monopoly power
  2. (b) They eliminated export opportunities
  3. (c) They excluded rural entrepreneurs
  4. (d) They restricted economies of scale and technological upgrading
Answer & solution

Answer: (d) They restricted economies of scale and technological upgrading

Correct Answer: They restricted economies of scale and technological upgrading — Option (d)
The small-scale industry (SSI) reservation policy in India (which reserved certain products exclusively for manufacture in small-scale units) had the primary drawback of restricting economies of scale and technological upgrading. Since SSIs were kept small by definition (with investment limits in plant and machinery), they could not: Adopt modern large-scale machinery and technology; Benefit from economies of scale (lower per-unit costs at higher production volumes); Upgrade to capital-intensive, technologically advanced production methods; Compete effectively in global markets requiring large volumes and consistent quality. This policy was gradually dismantled after 1991 economic reforms, as it was recognized as hampering India's industrial competitiveness. The number of reserved items was progressively reduced from over 800 to zero by 2015.
Option (a) They encouraged monopoly power — Incorrect: SSI reservation policies actually prevented large firms from entering reserved sectors; monopoly power is more associated with the lack of competition, not SSI reservation specifically.
Option (b) They eliminated export opportunities — Incorrect: While SSI policies affected export competitiveness, the primary and most significant drawback was the restriction on achieving economies of scale and technology adoption, not the elimination of export opportunities per se.
Option (c) They excluded rural entrepreneurs — Incorrect: SSI reservation policies were not specifically aimed at rural vs. urban entrepreneurs; both could set up small-scale units. The key drawback was the restriction on scale and technology.
RRB NTPC GL CBT-1 2025-26 – 27 March 2026 Shift 3 · Industrial productivity and growth performance

Q66. What was a major reason for the slowdown in Total Factor Productivity (TFP) growth in the manufacturing sector, as found by Goldar and Kumari?

  1. (a) Deterioration in capacity utilisation
  2. (b) Over-reliance on foreign capi tal
  3. (c) Shortage of skilled labour
  4. (d) Excessive regulation on exports
Answer & solution

Answer: (a) Deterioration in capacity utilisation

Topic: Total Factor Productivity (TFP) in Manufacturing
Goldar and Kumari's Research Findings:
TFP measures productivity growth after accounting for
labor and capital inputs.
Key Finding:Major slowdown in TFP growth was due to
deterioration in capacity utilisationin manufacturing.
Underutilized capacity → Lower output per unit of input
→ Reduced productivity growth.
Answer: Option 1 → Deterioration in capacity utilisation
RRB NTPC GL CBT-1 2025-26 – 27 March 2026 Shift 3 · Infrastructure sectors

Q67. Which of the following is a key element of the monetary system infrastructure of India?

  1. (a) Banks
  2. (b) Railways
  3. (c) Roads
  4. (d) Power stations
Answer & solution

Answer: (a) Banks

Topic:Monetary System Infrastructure
Monetary system deals with money supply, credit,
and financial transactions in the economy.
Key Elements:
• Central Bank (RBI) - regulates money supply
• Commercial Banks - facilitate transactions
• Financial institutions - provide credit
Railways, roads, power arephysical infrastructure,
not part of monetary system.
Answer: Option 1 → Banks
RRB NTPC GL CBT-1 2025-26 – 25 March 2026 Shift 1 · LPG reforms of 1991

Q68. During the 1990–91 balance of payments crisis, India’s foreign exchange reserves were sufficient to finance imports for only:

  1. (a) two weeks
  2. (b) one week
  3. (c) three months
  4. (d) one month
Answer & solution

Answer: (a) two weeks

1990-91 Balance of Payments Crisis
India faced severe economic crisis in 1990-91 due to:
• Gulf War → oil prices increased sharply
• Political instability → loss of investor confidence
• High fiscal deficit and current account deficit
Foreign Exchange Reserves Status:
By July 1991, India's forex reserves had depleted to approximately$1 billion
This amount was sufficient to finance imports for onlytwo weeks
India had to pledge 67 tonnes of gold to avoid default
Answer: Option 1 → two weeks
RRB NTPC GL CBT-1 2025-26 – 25 March 2026 Shift 1 · LPG reforms of 1991

Q69. Which of the following is NOT an impact of globalisation on Indian economy?

  1. (a) Foreign direct investment (FDI) has been liberalised
  2. (b) Introduction of a system of partial convertibility of the rupee
  3. (c) Two stage devaluation of the rupee by about twenty percent in July, 1991
  4. (d) Foreign institutional investments are made more restrictive for stability of the economy
Answer & solution

Answer: (d) Foreign institutional investments are made more restrictive for stability of the economy

Topic: Globalisation Impact on Indian Economy
Globalisation Effects (1991 onwards):
•FDI Liberalisation- Foreign investment limits increased across sectors
•Rupee Convertibility- Partial convertibility introduced for current account
•Rupee Devaluation (July 1991)- Two-stage 18-19% devaluation to boost exports
•FII Liberalisation- Foreign institutional investments were LIBERALISED, not restricted
Key Point:
Globalisation promotes opening up of economy through liberalisation.
Making FII more restrictive contradicts globalisation principles.
Answer: Option 4 → Foreign institutional investments are made more restrictive for stability of the economy
RRB NTPC GL CBT-1 2025-26 – 24 March 2026 Shift 1 · LPG reforms of 1991

Q70. Which process in the contemporary period is responsible for economic integration of countries on a global scale?

  1. (a) Glocalisation
  2. (b) Transnationalisation
  3. (c) Industrialisation
  4. (d) Globalisation
Answer & solution

Answer: (d) Globalisation

Topic: Economic Integration
Globalisationis the process of economic, political, and cultural integration of countries worldwide.
Key features:
• Free flow of goods, services, capital, and labor across borders
• Integration of national economies into global economy
• Increased interdependence among nations
Other options:
Glocalisation = Global + Local adaptation
Transnationalisation = Operations across borders
Industrialisation = Development of industries
Answer: Option 4 → Globalisation
RRB NTPC GL CBT-1 2025-26 – 24 March 2026 Shift 1 · LPG reforms of 1991

Q71. What are the three aims of economic policy listed in the 1991 document?

  1. (a) Nationalisation, Deregulation, Decentralisation
  2. (b) Liberalisation, Globalisation, Privatisation
  3. (c) Market Liberalisation, Trade Restrictions, State Control
  4. (d) Protectionism, Regulation, Public Ownership
Answer & solution

Answer: (b) Liberalisation, Globalisation, Privatisation

Topic: Economic Reforms of 1991
The 1991 economic policy document introduced major reforms in India under Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh.
Three Main Aims:
1.Liberalisation→ Removing government controls and restrictions on industries
2.Globalisation→ Integrating Indian economy with world economy
3.Privatisation→ Reducing public sector role and encouraging private sector
These reforms marked a shift from socialist policies to market-oriented economy.
Answer: Option 2 → Liberalisation, Globalisation, Privatisation
RRB NTPC GL CBT-1 2025-26 – 22 March 2026 Shift 1 · LPG reforms of 1991

Q72. Which of the following factors most significantly contributed to the emergence of Indian multinational corporations like Reliance Industries and Tata Group in the post-reform era?

  1. (a) Expansion of nationalized sectors
  2. (b) Continued government subsidies
  3. (c) Globalization and privatization
  4. (d) Growth in agricultural exports
Answer & solution

Answer: (c) Globalization and privatization

Topic: Indian Economic Reforms (1991 onwards)
Post-1991 Reform Era:
Economic liberalization opened Indian markets to global competition.
Privatization reduced government control, allowing private sector expansion.
Globalization enabled Indian companies to access foreign markets and capital.
Impact on Indian MNCs:
Reliance and Tata expanded globally through foreign investments and acquisitions.
Removal of License Raj freed businesses from bureaucratic restrictions.
Access to global technology and partnerships boosted competitiveness.
Answer: Option 3 → Globalization and privatization
RRB NTPC GL CBT-1 2025-26 – 22 March 2026 Shift 2 · LPG reforms of 1991

Q73. The primary goal of fiscal policy reforms post-1991 was to ____________.

  1. (a) Ban private banks
  2. (b) Increase budget deficits
  3. (c) Stop tax collection
  4. (d) Reduce fiscal deficit and inflation
Answer & solution

Answer: (d) Reduce fiscal deficit and inflation

Topic: Economic Reforms 1991 - Fiscal Policy
Pre-1991: India faced severe fiscal crisis with high budget deficit, rising inflation, and balance of payment crisis.
Primary Goals of Fiscal Policy Reforms:
1. Reduce fiscal deficit through expenditure control
2. Control inflation by reducing government borrowing
3. Rationalize tax structure and improve revenue
Other options incorrect: Reforms encouraged private sector participation, aimed to reduce deficits (not increase), and improved tax system.
Answer: Option 4 → Reduce fiscal deficit and inflation
RRB NTPC GL CBT-1 2025-26 – 22 March 2026 Shift 3 · LPG reforms of 1991

Q74. The liberalization of the Indian economy in 1991 led to which of the following fiscal outcomes?

  1. (a) Lowering of direct and indirect tax rates
  2. (b) Elimination of all public debt
  3. (c) Sharp increase in Government control over pricing
  4. (d) Higher import duties
Answer & solution

Answer: (a) Lowering of direct and indirect tax rates

Topic: Economic Liberalization 1991
Key Reforms:
1. Tax reforms reduced direct tax rates (income tax, corporate tax)
2. Indirect tax rates (customs, excise) were lowered
3. Import duties were reduced to promote trade
Other Options:
Option 2: Public debt continued to exist
Option 3: Government reduced price controls, not increased
Option 4: Import duties were reduced, not increased
Answer: Option 1 → Lowering of direct and indirect tax rates
RRB NTPC GL CBT-1 2025-26 – 19 March 2026 Shift 2 · Make in India, Startup India and PLI

Q75. The 'Make in India' initiative was launched in which of the following years?

  1. (a) 2014
  2. (b) 2015
  3. (c) 2012
  4. (d) 2013
Answer & solution

Answer: (a) 2014

Make in India Initiative
Launched by:Prime Minister Narendra Modi
Date:25 September 2014
Objective: Boost manufacturing and attract foreign investment
Answer: Option 1 → 2014
RRB NTPC GL CBT-1 2025-26 – 19 March 2026 Shift 3 · LPG reforms of 1991

Q76. What major change happened in India's agriculture and industrial sectors after the economic reforms of 1991?

  1. (a) The government increased control over private industries.
  2. (b) More private companies and foreign investments were allowed.
  3. (c) Farming became the only source of national income.
  4. (d) Only agriculture was given importance, not industry.
Answer & solution

Answer: (b) More private companies and foreign investments were allowed.

Topic: Economic Reforms of 1991 (LPG Policy)
Key Changes in Agriculture & Industry:
1.Liberalization:Reduced government control, encouraged private sector participation.
2.Privatization:Public sector enterprises opened to private investment.
3.Globalization:Foreign Direct Investment (FDI) allowed in various sectors.
4. Industrial licensing abolished for most industries, promoting competition.
Answer: Option 2 → More private companies and foreign investments were allowed.
RRB NTPC GL CBT-1 2025-26 – 18 March 2026 Shift 2 · LPG reforms of 1991

Q77. Which structural change increased competition in the Indian industry after liberalisation ?

  1. (a) Public monopolies
  2. (b) Price controls
  3. (c) Industrial protection
  4. (d) Entry of MNCs
Answer & solution

Answer: (d) Entry of MNCs

Key Structural Changes:
• Removal of License Raj and industrial controls
• Opening economy to foreign investment (FDI)
• Entry of Multinational Corporations (MNCs)
Impact of MNC Entry:
MNCs brought advanced technology, capital, and global standards.
Indian companies faced direct competition from foreign firms.
This increased efficiency and quality in domestic industry.
Answer: Option 4 → Entry of MNCs
RRB NTPC GL CBT-1 2025-26 – 18 March 2026 Shift 3 · LPG reforms of 1991

Q78. Which of the following is the outcome of Globalization in India's economy?

  1. (a) Privatisation
  2. (b) Nationalisation
  3. (c) Liberalisation
  4. (d) Outsourcing
Answer & solution

Answer: (d) Outsourcing

Globalization = Integration of Indian economy with world economy
Key outcomes:
• Foreign companies entering India
• Indian companies going global
•Outsourcing- Foreign companies hiring Indian workers/services
• IT, BPO, KPO sectors grew due to outsourcing
Note: Liberalisation & Privatisation arecausesof globalization (LPG reforms 1991), not outcomes
Answer: Option 4 → Outsourcing
RRB NTPC GL CBT-1 2025-26 – 18 March 2026 Shift 3 · Infrastructure sectors

Q79. What is one direct way in which economic infrastructure contributes to development?

  1. (a) It limits the expansion and growth of physical capital in various sectors
  2. (b) It restricts the improvements in human capital affecting labor quality
  3. (c) It decreases the overall productivity of all inputs across different sectors
  4. (d) The output or the final products of different segments of infrastructure
Answer & solution

Answer: (d) The output or the final products of different segments of infrastructure

Economic Infrastructure & Development
Infrastructure directly contributes through itsoutput/services:
• Transport → Movement of goods/people
• Energy → Power supply for production
• Communication → Information exchange
These outputs enable production in other sectors.
Options 1-3 describe negative impacts (incorrect).
Option 4 correctly identifies infrastructure's direct contribution.
Answer: Option 4 → The output or the final products of different segments of infrastructure
RRB NTPC GL CBT-1 2025-26 – 16 March 2026 Shift 3 · LPG reforms of 1991

Q80. Which of the following is NOT regarded as an advantage of the LPG reforms in India?

  1. (a) Rise in trade restrictions
  2. (b) Expansion of the private sector
  3. (c) Boost in international partnerships
  4. (d) Adoption of advanced technologies
Answer & solution

Answer: (a) Rise in trade restrictions

LPG = Liberalisation , Privatisation , Globalisation (1991 economic reforms).
ADVANTAGES of LPG reforms:
• Expansion of private sector and FDI.
• Boost in international trade partnerships.
• Adoption of advanced technologies from abroad.
• Reduction of trade restrictions and import licensing (not increase).
NOT an advantage:
• Rise in trade restrictions → This is the OPPOSITE of what LPG did.
LPG specifically reduced tariffs and trade barriers.
Answer: Option 1 → Rise in trade restrictions
SSC MTS 2025 – 20 February 2026 Shift 1 · Public sector undertakings (Maharatna, Navratna, Miniratna)

Q81. In India, the coking coal mines were nationalised in the year _____.

  1. (a) 1970
  2. (b) 1972
  3. (c) 1974
  4. (d) 1976
Answer & solution

Answer: (b) 1972

Correct Answer: 1972 (Option 2)
In India, the Coking Coal Mines (Nationalization) Act was enacted in 1972, through which coking coal mines were nationalized and brought under government control. Subsequently, all remaining coal mines were nationalized in 1973 under the Coal Mines (Nationalization) Act.
Why other options are wrong:
Option 1 – 1970 was not the year of coking coal mine nationalization.
Option 3 – 1974 is incorrect; though some events in the coal sector occurred around this time.
Option 4 – 1976 does not correspond to any major coal nationalization event in India.
SSC MTS 2025 – 20 February 2026 Shift 2 · LPG reforms of 1991

Q82. After LPG reforms, India mainly followed _____.

  1. (a) full capital account convertibility strategy
  2. (b) capitalist model of economy
  3. (c) export led growth strategy
  4. (d) import-substitution strategy of growth
Answer & solution

Answer: (c) export led growth strategy

Correct Answer: export led growth strategy (Option 3)
After the LPG (Liberalization, Privatization, and Globalization) reforms of 1991, India shifted its economic strategy towards an export-led growth model. The reforms involved opening up the economy, reducing trade barriers, welcoming foreign investment, and encouraging Indian industries to compete in global markets. This replaced the earlier Import Substitution Industrialization (ISI) strategy.
Why other options are wrong:
Option 1 – Full capital account convertibility was not immediately adopted; India maintained partial convertibility.
Option 2 – India adopted a mixed market economy, not purely a capitalist model.
Option 4 – Import-substitution strategy was the approach followed BEFORE the 1991 LPG reforms, not after.
RRB JE CBT-1 2025-26 – 20 February 2026 · Disinvestment

Q83. What is it called when the government sells part of its share in public sector companies to the public?

  1. (a) Globalisation
  2. (b) Nationalisation
  3. (c) Disinvestment
  4. (d) Industrialisation
Answer & solution

Answer: (c) Disinvestment

The process of the government selling its stake in public sector companies to the public is known as Disinvestment.
This reduces the government’s shareholding in these companies.
It is done to improve efficiency and raise funds.
Hence, the correct term is Disinvestment (Option 3).
Answer complete.
SSC MTS 2025 – 19 February 2026 Shift 1 · Public sector undertakings (Maharatna, Navratna, Miniratna)

Q84. Andrew Yule & Co. Ltd., became a public sector enterprise in _____.

  1. (a) 1979
  2. (b) 1989
  3. (c) 1991
  4. (d) 1959
Answer & solution

Answer: (a) 1979

The correct answer is option 1.
Andrew Yule & Co. Ltd., originally a British managing agency house established in 1863 in Calcutta, became a public sector enterprise in 1979 when the Government of India took it over. It is now under the Ministry of Heavy Industries and is headquartered in Kolkata.
Option 2 is incorrect: 1989 is not the year of its nationalization.
Option 3 is incorrect: 1991 is associated with India's economic liberalization reforms, not the nationalization of Andrew Yule.
Option 4 is incorrect: 1959 predates the actual government takeover of the company.
SSC MTS 2025 – 19 February 2026 Shift 3 · Make in India, Startup India and PLI

Q85. The Semicon India Programme was launched in _____.

  1. (a) 1999
  2. (b) 2001
  3. (c) 2011
  4. (d) 2021
Answer & solution

Answer: (d) 2021

Correct Answer: 2021 (Option 4)
The Semicon India Programme was launched by the Government of India in 2021 as part of the Production Linked Incentive (PLI) scheme. Its aim is to develop India's semiconductor and display manufacturing ecosystem by attracting domestic and foreign investment in chip fabrication, packaging, and testing facilities.
Why other options are wrong:
Options 1 (1999), 2 (2001), and 3 (2011) all predate the formal launch of this programme , which is a recent initiative aligned with India's push to become a global semiconductor hub.
RRB JE CBT-1 2025-26 – 19 February 2026 · LPG reforms of 1991

Q86. What global events in late 2019 and early 2020 have contributed to a rethinking of globalisation strategies among policymakers?

  1. (a) COVID-19 pandemic
  2. (b) Decrease in oil prices and global warming
  3. (c) Urbanization and migration
  4. (d) Technological stagnation and inflation
Answer & solution

Answer: (a) COVID-19 pandemic

The COVID-19 pandemic began spreading globally in late 2019 and early 2020.
It caused major disruptions in global supply chains, travel, and trade.
Policymakers worldwide reconsidered their globalisation strategies to enhance resilience and reduce dependence on single sources.
None of the other options had as significant an impact on rethinking globalisation during that period.
Hence, the correct answer is COVID-19 pandemic.
SSC MTS 2025 – 18 February 2026 Shift 1 · LPG reforms of 1991

Q87. Which of the following problem was faced by the Indian economy at the beginning of the decade of nineties?
I. Indian economy was facing a strong inflationary pressure.
II. The economy was experiencing shortages of finance for industrialisation etc.

  1. (a) Only I
  2. (b) Only II
  3. (c) Both I and II
  4. (d) Neither I nor II
Answer & solution

Answer: (c) Both I and II

In the early 1990s, India faced both severe inflationary pressure (I) and an acute shortage of finance for industrialisation (II). The Balance of Payments crisis of 1991 forced India to pledge gold and approach the IMF. Both factors led to the landmark economic reforms of 1991. Only I and Only II are incomplete answers.
SSC MTS 2025 – 17 February 2026 Shift 1 · MSME sector

Q88. According to the Industrial Policy Statement, 1980, the investment limit in tiny units was raised to Rs. _____ lakhs.

  1. (a) 1
  2. (b) 2
  3. (c) 5
  4. (d) 10
Answer & solution

Answer: (b) 2

According to the Industrial Policy Statement of 1980, the investment limit in tiny units was raised to Rs. 2 lakhs. The earlier 1977 Industrial Policy had set the limit at Rs. 1 lakh. Options 5 and 10 are too high and do not correspond to this policy.
SSC MTS 2025 – 16 February 2026 Shift 1 · Industrial Policy Resolutions (1948, 1956, 1991)

Q89. According to the Industrial Policy Resolution, 1948, the industries were divided into how many categories?

  1. (a) 8
  2. (b) 4
  3. (c) 6
  4. (d) 2
Answer & solution

Answer: (b) 4

The Industrial Policy Resolution of 1948 divided industries into 4 categories:
1. Industries exclusively under state ownership (e.g., arms, atomic energy, railways).
2. Industries where the state would establish new enterprises but private sector could continue (e.g., coal, steel, aircraft).
3. Industries subject to government regulation and control.
4. All remaining industries under private enterprise with state oversight.
Why other options are incorrect:
- 8: Incorrect; the 1948 IPR specified 4 categories, not 8.
- 6: Incorrect; there were 4 categories, not 6.
- 2: Incorrect; the classification was more detailed, covering 4 categories.
SSC MTS 2025 – 16 February 2026 Shift 1 · Public sector undertakings (Maharatna, Navratna, Miniratna)

Q90. On 24th January ____, a 100% public sector enterprise, Bharat Refineries Limited, acquired complete ownership of Burmah Shell's interests in India.

  1. (a) 1984
  2. (b) 1976
  3. (c) 1978
  4. (d) 1980
Answer & solution

Answer: (b) 1976

On January 24, 1976, Bharat Refineries Limited (later renamed Bharat Petroleum Corporation Limited/BPCL) acquired complete ownership of Burmah Shell's operations in India. This was part of India's nationalisation of oil companies in the 1970s. The company was established under the Burmah Shell (Acquisition of Undertakings in India) Act, 1976.
Why other options are incorrect:
- 1984: Incorrect; the acquisition took place in 1976, not 1984.
- 1978: Incorrect; the acquisition had already occurred two years earlier.
- 1980: Incorrect; Burmah Shell's acquisition was completed in 1976.
SSC MTS 2025 – 16 February 2026 Shift 1 · LPG reforms of 1991

Q91. In the late 1980s economic crisis, the international agencies imposed conditions on India to get the loan for tackling the economic crisis. Which of the following was NOT included in those conditions?

  1. (a) To liberalise and open the economy by removing restrictions on the private sector.
  2. (b) To reduce the role of the government in many areas.
  3. (c) To remove trade restrictions between India and other countries.
  4. (d) To open new public enterprises in consumer goods sector.
Answer & solution

Answer: (d) To open new public enterprises in consumer goods sector.

During the 1991 economic crisis, international agencies like the IMF and World Bank imposed structural adjustment conditions on India, which included: liberalisation (removing private sector restrictions), privatisation (reducing government role), and globalisation (removing trade barriers). Opening new public enterprises in the consumer goods sector was NOT a condition — in fact, the opposite was required: reducing state intervention and supporting privatisation.
Why other options are incorrect:
- To liberalise the economy: This WAS a condition imposed — removing restrictions on private enterprise.
- To reduce the role of government: This WAS a condition — privatisation and disinvestment.
- To remove trade restrictions: This WAS a condition — dismantling import controls and tariff barriers.
SSC MTS 2025 – 13 February 2026 Shift 1 · Make in India, Startup India and PLI

Q92. The National Manufacturing Policy in India was announced in _____.

  1. (a) 2003
  2. (b) 2007
  3. (c) 2011
  4. (d) 2015
Answer & solution

Answer: (c) 2011

Correct Answer: Option 3 – 2011
The National Manufacturing Policy (NMP) was announced by the Government of India in November 2011. The policy aimed to increase the share of manufacturing in GDP to 25% and create 100 million jobs by 2022. It introduced the concept of National Investment and Manufacturing Zones (NIMZs) to attract investment and boost industrial output.
Why other options are wrong:
Option 1 (2003): The NMP was not announced in 2003.
Option 2 (2007): No National Manufacturing Policy was announced in 2007.
Option 4 (2015): The NMP was announced in 2011; 2015 is associated with the 'Make in India' initiative.
SSC MTS 2025 – 13 February 2026 Shift 1 · Disinvestment

Q93. The disinvestment process of CPSEs (Central Public Sector Enterprises) in India was initiated in the year _____.

  1. (a) 1989
  2. (b) 1987
  3. (c) 1991
  4. (d) 1985
Answer & solution

Answer: (c) 1991

Correct Answer: Option 3 – 1991
The disinvestment process of Central Public Sector Enterprises (CPSEs) in India was formally initiated in 1991–92, as part of the New Economic Policy (LPG reforms — Liberalisation , Privatisation , Globalisation ). The government began selling minority stakes in PSUs to generate revenue and improve their efficiency. This was triggered by India's balance of payments crisis and the shift toward a market-oriented economy.
Why other options are wrong:
Option 1 (1989): No formal CPSE disinvestment programme was launched in 1989.
Option 2 (1987): Disinvestment was not initiated in 1987.
Option 4 (1985): No systematic disinvestment policy existed in 1985.
SSC MTS 2025 – 13 February 2026 Shift 2 · LPG reforms of 1991

Q94. What commitment did India make as part of its globalisation efforts during LPG reforms?

  1. (a) To increase tariffs on import of commodities.
  2. (b) To abolish or reduce tariffs on the import of commodities.
  3. (c) To impose quantitative restrictions on imports.
  4. (d) To increase non-tariff barriers on imports.
Answer & solution

Answer: (b) To abolish or reduce tariffs on the import of commodities.

During the Liberalisation, Privatisation, and Globalisation (LPG) reforms initiated in 1991, India committed to reducing or abolishing tariffs on imports as part of opening its economy and complying with WTO obligations. This involved dismantling trade barriers and integrating with the global economy.
Why other options are incorrect:
- To increase tariffs: This would be protectionist, contrary to the spirit of LPG reforms.
- To impose quantitative restrictions: Such restrictions were phased out under WTO agreements.
- To increase non-tariff barriers: This would also contradict globalisation commitments.
SSC MTS 2025 – 12 February 2026 Shift 3 · Disinvestment

Q95. In which year was the Disinvestment Commission set up in India?

  1. (a) 1998
  2. (b) 1992
  3. (c) 1994
  4. (d) 1996
Answer & solution

Answer: (d) 1996

Correct Answer: Option 4 – 1996
The Disinvestment Commission in India was established in 1996 under the chairmanship of G.V. Ramakrishna. It was set up to advise the government on disinvestment of public sector enterprises. The commission played a key role in formulating the disinvestment policy framework for PSUs in India.
Why other options are wrong:
Option 1 (1998): 1998 is not the year of establishment; the commission was formed in 1996.
Option 2 (1992): While some early disinvestment occurred in 1991–92, the formal Disinvestment Commission was set up in 1996.
Option 3 (1994): Incorrect; the commission was established in 1996, not 1994.
SSC MTS 2025 – 11 February 2026 Shift 1 · Infrastructure sectors

Q96. "Mission Coking Coal" aims to increase India's domestic raw coking coal production up to 140 MT by FY _____.

  1. (a) 2035-36
  2. (b) 2029-30
  3. (c) 2039-40
  4. (d) 2045-46
Answer & solution

Answer: (b) 2029-30

The correct answer is 2029-30 (Option 2). 'Mission Coking Coal' is a Government of India initiative to boost domestic production of coking coal (used in steel manufacturing) to 140 million tonnes (MT) by FY 2029-30, reducing India's dependence on coal imports. Options 1, 3, and 4 mention incorrect target years.
SSC MTS 2025 – 11 February 2026 Shift 2 · LPG reforms of 1991

Q97. In the context of LPG reforms in India, the growth of GDP increased from 5.6% during 1980-1991 to _____ during 2007-2012.

  1. (a) 6%
  2. (b) 6.5%
  3. (c) 8.2%
  4. (d) 12%
Answer & solution

Answer: (c) 8.2%

The correct answer is 8.2% (Option 3). India's Liberalisation , Privatisation , and Globalisation (LPG) reforms began in 1991. Following these reforms, India's GDP growth rate significantly improved. During 2007-2012 (coinciding with the global economic boom and post- liberalisation growth), India's average GDP growth rate was approximately 8.2%, compared to 5.6% during 1980-1991. Options 1 (6%), 2 (6.5%), and 4 (12%) are incorrect figures.
SSC MTS 2025 – 11 February 2026 Shift 3 · MSME sector

Q98. As per the Industrial Policy Statement, 1977 a tiny unit was one which has an investment of Rs. _____ lakh.

  1. (a) 0.5
  2. (b) 1
  3. (c) 5
  4. (d) 10
Answer & solution

Answer: (b) 1

The correct answer is Rs. 1 lakh (Option 2). As per the Industrial Policy Statement of 1977, a 'tiny unit' was defined as one having an investment of up to Rs. 1 lakh in plant and machinery. This was distinct from small-scale industries which had higher investment limits. Options 1 (0.5 lakh), 3 (5 lakh), and 4 (10 lakh) do not match the 1977 policy definition for tiny units.
SSC MTS 2025 – 10 February 2026 Shift 1 · LPG reforms of 1991

Q99. In the context of LPG reforms in India, the opening of the economy has led to a rapid _____.
I. increase in the foreign direct investment
II. decrease in the foreign exchange reserve

  1. (a) Only I
  2. (b) Only II
  3. (c) Both I and II
  4. (d) Neither I nor II
Answer & solution

Answer: (a) Only I

Correct Answer: 1 – Only I.
The LPG ( Liberalisation , Privatisation , Globalisation ) reforms introduced in India in 1991 led to the opening of the economy. This resulted in a rapid increase in Foreign Direct Investment (FDI) as multinational companies were allowed to invest in India (Statement I is correct).
Statement II is incorrect: the opening of the economy did NOT decrease foreign exchange reserves. In fact, India's forex reserves increased significantly after the 1991 reforms. The balance of payments crisis of 1991 was resolved and forex reserves grew steadily thereafter.
Therefore, Only I is correct.
SSC MTS 2025 – 10 February 2026 Shift 2 · Industrial Policy Resolutions (1948, 1956, 1991)

Q100. Which of the following is the objective of the India's Industrial Policy 1991?
I. To introduce liberalisation.
II. To remove restrictions on direct foreign investment.

  1. (a) Only I
  2. (b) Only II
  3. (c) Both I and II
  4. (d) Neither I nor II
Answer & solution

Answer: (c) Both I and II

Correct Answer: 3 – Both I and II.
India's Industrial Policy of 1991 (New Industrial Policy, 1991) had several key objectives:
Statement I is correct: It aimed to introduce liberalisation by dismantling the industrial licensing system (reducing the number of industries under compulsory licensing).
Statement II is correct: It aimed to remove restrictions on Foreign Direct Investment (FDI), allowing up to 51% FDI in high-priority industries through an automatic route.
Both statements accurately reflect the objectives of the 1991 Industrial Policy, which was part of the broader LPG (Liberalisation, Privatisation, Globalisation) reforms.
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