Class 9 Reforms and Emerging Trends in the Indian Economy Mock Test (ICSE)

Topics in Reforms and Emerging Trends in the Indian Economy

• Liberalisation, privatisation and globalisation (LPG)
• Smart cities
• Digital economy
• Start-ups and Make in India

Reforms and Emerging Trends in the Indian Economy practice questions with answers

1. Q1Multiple choice·1 mark
   What is the primary focus of the Smart Cities Mission introduced in India?

   1. (a)Moving people from crowded metros into newly built satellite towns
   2. (b)Restoring the heritage sites and culture of selected historic towns
   3. (c)Building core infrastructure and smart solutions for better city life
   4. (d)Giving interest subsidies to poor urban families buying their first homes
   Show answer and step marks

   1. Correct option: (c) Building core infrastructure and smart solutions for better city life+1

   Answer: (c)
2. Q2Multiple choice·1 mark
   Which of the following best describes the core concept of 'globalisation' as a component of the New Economic Policy of 1991?

   1. (a)Restricting foreign goods to protect domestic cottage industries
   2. (b)Integrating the domestic economy with the global economy through trade, investment, and technology flows
   3. (c)Removal of industrial licensing and government controls on businesses
   4. (d)Transferring ownership of public sector undertakings to private entities
   Show answer and step marks

   1. Correct option: (b) Integrating the domestic economy with the global economy through trade, investment, and technology flows+1

   Answer: (b)
3. Q3Multiple choice·1 mark
   Which of the following is a key digital payment enabler that has significantly boosted the digital economy in India?

   1. (a)DigiLocker digital document wallet
   2. (b)CoWIN vaccination booking portal
   3. (c)DigiYatra airport check-in app
   4. (d)Unified Payments Interface (UPI)
   Show answer and step marks

   1. Correct option: (d) Unified Payments Interface (UPI)+1

   Answer: (d)
4. Q4Multiple choice·1 mark
   Which of the following initiatives was launched with the primary objective of transforming India into a global manufacturing hub and encouraging companies to manufacture their products within the country?

   1. (a)Make in India
   2. (b)Startup India
   3. (c)Smart Cities Mission
   4. (d)Digital India
   Show answer and step marks

   1. Correct option: (a)+1

   Answer: (a)
5. Q5Long answer·4 marks
   (a) Explain the term 'liberalisation' in the context of the New Economic Policy of 1991 and mention any one reform measure introduced under it. [2] (b) Discuss any two positive impacts of globalisation on the Indian economy. [2]
   Show answer and step marks

   1. (a) Liberalisation means relaxing government rules, licences and controls on economic activity so that market forces and private enterprise can operate more freely.+1
   2. (a) One measure, any one of: abolition of industrial licensing for most industries; reduction of import tariffs and quantitative restrictions; easier entry for foreign investment; financial sector reforms such as freeing interest rates; or any other valid 1991 liberalisation measure.+1
   3. (b) First positive impact, any one of: inflow of foreign direct investment bringing capital and advanced technology; a wider variety of better-quality goods for consumers at competitive prices; growth of exports, especially IT and IT-enabled services, creating jobs; a rise in foreign exchange reserves; or any other valid positive impact.+1
   4. (b) Second positive impact, a different one from the same list.+1

   Answer: (a) Liberalisation is the relaxation of government controls so that market forces operate freely; e.g. abolition of industrial licensing for most industries. (b) Any two of: FDI inflow bringing capital and technology; wider choice of quality goods at competitive prices; growth of exports and IT services creating jobs; higher foreign exchange reserves.

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