Which sector of the economy was impacted by reforms like the reduction of subsidies after 1991?

Correct option is B

The correct answer is (B) Agriculture

Explanation:

The agriculture sector was notably impacted by the economic reforms of 1991, especially due to the reduction of subsidies on fertilizers, electricity, and irrigation. These reforms aimed at liberalizing the economy but increased input costs for farmers. While the industrial and service sectors benefitted significantly, agriculture experienced higher production costswithout proportionate income support.

Information Booster:

• Fertilizer and irrigation subsidies were reduced post-1991 reforms.

• Cost of inputs like diesel, electricity, and seeds increased.

• Agricultural growth slowed compared to industry and services.

• Export policies and market competition impacted rural earnings.

• Focus of reforms shifted towards industrial liberalization.

• Farmers became more reliant on the market for inputs and pricing.

• Agricultural productivity became a key concern in policy debates.

Additional Information:

• Tourism: Was not directly affected by subsidy reforms; gained later from increased foreign exchange inflow.

• Industrial sector: Benefitted from deregulation, FDI, and policy liberalization.

• IT sector: Experienced rapid growth post-1991 due to liberalized export policies and skilled workforce.