(i) ``Modernisation extends beyond just the implementation of new technology.'' Justify the given statement, focusing on the economic planning goals. (ii) ``Economic reforms of 1991 changed the structure of the financial sector in India to a large extent.'' Justify the given statement, highlighting any two reforms introduced in the financial sector. (i) "Subsidies in the agriculture sector have been a debated question for long." Validate the argument that subsidies should be gradually phased out in the agriculture sector. (ii) ``The regime of quantitative restrictions followed by the government during the economic planning period was reversed in post-trade reforms era. Do you agree with the given statement ? Give valid reasons in support of your answer.

Question

Accepted Answer

(i) **I justify that modernization extends beyond new technology.** Justification:

**Economic Planning Goals:**
1. **New Technology:** Adoption of modern technology like HYV seeds, machinery
2. **Structural Changes:** Shift in sectoral composition of production
3. **Institutional Innovations:** Changes in social outlook, gender empowerment
4. **Diversification:** New activities and economic diversification

**Impact:**
- Increased productivity
- Higher standards of living
- Social progress
- Economic transformation

(ii) **Economic Reforms of 1991:**
- Changed structure of Indian economy
- Liberalisation, Privatisation, Globalisation
- Led to increased GDP growth
- Service sector became dominant
- FDI inflows increased significantly