Multiple choice

Which of the following statements is correct with regards to the external sector in the post reform period?

  1. Quantitative restrictions have been imposed on a number of tradable items.

  2. Quantitative restrictions have been removed on most of the items, except a few goods.

  3. The tariff walls have been further raised.

  4. Foreign investment is now being discouraged

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

After the 1991 economic reforms, India removed quantitative restrictions on most imports except for a few sensitive items like consumer goods and agricultural products. Option A is incorrect as QRs were removed, not imposed. Option C is incorrect as tariff walls were reduced, not raised. Option D is incorrect as foreign investment was encouraged through FDI liberalization.

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