Relevant Titles:

1. Impact of LPG Reforms on Indian Economy Class 12 Economics MCQs with Answers

2. CBSE Class 12 Economics Online Quiz – Liberalisation, Privatisation, Globalisation

3. NCERT-Based Class 12 Economics MCQs on Impact of 1991 Reforms

4. CBSE Economics Practice Test – Economic Reforms and India’s Growth

5. Class 12 Economics MCQs – Effects of LPG Reforms on Indian Economy

Introduction:

Enhance your CBSE Class 12 Economics preparation with this online MCQ practice test on “Impact of LPG Reforms on Indian Economy.” This topic from Part B: Indian Economic Development focuses on how India’s economy transformed after the implementation of the New Economic Policy of 1991, introducing Liberalisation, Privatisation, and Globalisation (LPG).

These MCQs are designed strictly as per the latest NCERT Class 12 Economics syllabus, making them ideal for CBSE board exam preparation. The quiz includes important concepts such as economic growth post-liberalisation, performance of industrial and agricultural sectors, foreign investment inflows, service sector expansion, and the challenges of global competition.

With automatic scoring and instant feedback, this interactive test allows students to strengthen conceptual understanding, evaluate performance, and prepare efficiently for exams. Ideal for self-assessment, class practice, or last-minute revision, it provides a focused, exam-ready learning experience.

Master the key outcomes of India’s 1991 reforms with this NCERT-based online MCQ test on Impact of LPG Reforms on Indian Economy and secure higher marks in your CBSE Class 12 Economics board exam.

Sample MCQs with Explanations:

1. The New Economic Policy of 1991 was introduced to:
A) Reduce unemployment
B) Overcome the balance of payments crisis
C) Encourage import substitution
D) Promote agriculture
✅ Answer: B) Overcome the balance of payments crisis
💡 Explanation: India adopted the LPG policy to address its economic crisis and promote sustainable growth through reforms.

2. Liberalisation led to:
A) Increase in government control
B) Removal of trade restrictions
C) Expansion of public sector
D) Decline in private investment
✅ Answer: B) Removal of trade restrictions
💡 Explanation: Liberalisation reduced government interference in business and promoted competition and openness.

3. Which sector benefited most from globalisation?
A) Agriculture
B) Industry
C) Services
D) Mining
✅ Answer: C) Services
💡 Explanation: The IT and service sectors grew rapidly due to global outsourcing and foreign investment post-1991.

4. Privatisation in India aimed at:
A) Expanding PSUs
B) Reducing efficiency
C) Increasing private sector participation
D) Regulating prices
✅ Answer: C) Increasing private sector participation
💡 Explanation: Privatisation encouraged private ownership and competition, improving productivity and efficiency.

5. A negative impact of LPG reforms was:
A) Decline in GDP
B) Jobless growth and income inequality
C) Fall in exports
D) Decline in technology
✅ Answer: B) Jobless growth and income inequality
💡 Explanation: Reforms boosted growth but led to uneven development, creating rural-urban income gaps.

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