(i) "Under the liberalisation measures taken by the Government of India, Trade and Investment Policy reforms were extremely crucial." Reject or support the given statement with valid arguments. (ii) "Despite the implementation of Green Revolution, 65 per cent of India's population continued to be engaged in the agriculture sector till the 1990s." Justify the given statement with valid explanation. (i) "Every coin has two sides - debate over farm subsidies is one such classic example of the same." Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies. (ii) State the importance of "Growth with equity" as the objective of Indian economic planning.

Question

Accepted Answer

(i) **I support the statement** that Trade and Investment Policy reforms were crucial. Arguments:

1. **Removal of Quantitative Restrictions:** On imports and exports, reducing barriers
2. **Removal of Export Duties:** To increase competitiveness of Indian goods internationally
3. **Reduction in Import Duties:** Improved competitiveness of domestic industries
4. **Relaxation in Import Licensing:** Abolished except for hazardous industries

(ii) **Impact of Trade Policy Reforms:**
- Increased international competitiveness
- Promotion of foreign investment and technology
- Efficiency improvement in local industries
- However, also led to increased competition for domestic industries
- Some sectors faced displacement due to cheaper imports