Correct option is B
The correct answer is: (B) Rose significantly
After the 1991 economic reforms, India's per capita income rose significantly due to liberalization, privatization, and globalization (LPG) policies.
These reforms opened the Indian economy to foreign investments, reduced trade barriers, and encouraged private sector growth.
The resulting increase in GDP growth rates translated into higher per capita income, reflecting improved average income levels across the population.
In 1991, India faced a severe balance of payments crisis, prompting the adoption of structural reforms.
Per capita income (current prices):
1990-91: approx ₹6,000
2020-21: approx ₹1.27 lakh
GDP growth rate averaged around 6–8% annually in the post-reform decades.
The reforms led to significant growth in sectors like IT, telecom, services, and manufacturing.
Higher foreign direct investment (FDI) inflows and global trade participation also boosted income levels.
Poverty reduction post-1991 reforms was notable, though regional and social disparities persisted.
While urban per capita income rose rapidly, rural growth was slower, reflecting the dual-speed growth in the Indian economy.
Per capita income = Net National Income / Mid-year population
Economic reforms were spearheaded by then Finance Minister Dr. Manmohan Singh under the Narasimha Rao Government.
India moved from a closed, socialist economy to a more market-oriented open economy, which catalyzed growth.
English
100 Questions
100 Marks
90 Mins
