1. Which generation of economic reforms in India emphasized the reform of factor markets (Land, Labor, Capital)?
Second Generation Reforms
Third Generation Reforms
First Generation Reforms (1991)
Fourth 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:
Nationalization of foreign banks.
Strengthening the banking system through capital adequacy, asset quality, and prudential norms.
Establishment of new private banks.
Merger of Regional Rural 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?
Reducing import tariffs only.
Deregulating the product market.
Reforming factor markets (Land, Labor, Capital).
Nationalization of banks.
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
Electronic Aerospace and Defence Equipment
Automobiles
Textiles
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.