1. Which generation of economic reforms in India emphasized the reform of factor markets (Land, Labor, Capital)?
Third Generation Reforms
Fourth Generation Reforms
First Generation Reforms (1991)
Second Generation Reforms
Explanation:
First generation reforms (1991) focused on product markets (liberalization). Second generation reforms focus on factor markets like labor laws, land acquisition, and legal frameworks.
2. The Narasimham Committee II (1998) mainly focused on:
Establishment of new private banks.
Merger of Regional Rural Banks.
Strengthening the banking system through capital adequacy, asset quality, and prudential norms.
Nationalization of foreign banks.
Explanation:
While Narasimham-I dealt with deregulation, Narasimham-II focused on "Second Generation Reforms" like stricter prudential norms, capital adequacy (CAR), and cleaning up NPAs.
3. The "Second Generation Reforms" in India focus primarily on which of the following areas?
Reforming factor markets (Land, Labor, Capital).
Reducing import tariffs only.
Nationalization of banks.
Deregulating the product market.
Explanation:
While first-generation reforms (1991) focused on product markets and liberalization, second-generation reforms aim at difficult structural changes in factor markets like labor laws, land acquisition, and legal/judicial reforms.
4. Under the New Industrial Policy 1991, mandatory industrial licensing was abolished for all industries EXCEPT a short list. Which of the following still requires licensing?
Cement
Automobiles
Textiles
Electronic Aerospace and Defence Equipment
Explanation:
Industrial licensing is kept only for 5 specific sectors related to security, strategic, and environmental concerns: Electronic Aerospace/Defence, Industrial Explosives, Hazardous Chemicals, Tobacco products, and Alcohol for consumption.