The correct answer is option 2: 2, 3 and 4 only.
After the liberalization of economic policies in India in 1991, there have been significant changes in the country`s economic landscape. Let`s examine each of the given options to see which ones have occurred.
1. Share of agriculture in GDP increased enormously.
This option is incorrect. In fact, the share of agriculture in India`s GDP has been declining since the 1990s, as the country has been transitioning towards a more service-oriented economy. According to data from the World Bank, the share of agriculture in India`s GDP was 29.1% in 1991 and has since decreased to around 15% in recent years.
2. Share of Indias exports in world trade increased.
This option is correct. India`s share of world exports has been steadily increasing since the 1990s. In 1991, India`s share of world exports was just 0.5%, but by 2019, it had increased to 1.7%. This growth can be attributed to several factors, including the liberalization of trade policies, the development of export-oriented industries, and improvements in infrastructure and logistics.
3. FDI inflows increased.
This option is also correct. After the liberalization of economic policies, India saw a significant increase in foreign direct investment (FDI) inflows. In 1991, India received just $132 million in FDI, but by 2020, this had increased to $81.7 billion. FDI inflows have played an important role in driving economic growth in India, particularly in sectors such as manufacturing, services, and infrastructure.
4. Indias foreign exchange reserves increased enormously.
This option is also correct. India`s foreign exchange reserves have increased significantly since the 1990s, reaching an all-time high of $608 billion in May 2021. These reserves provide a cushion against external shocks and help maintain macroeconomic stability. The increase in reserves can be attributed to several factors, including the growth in exports, remittances, and FDI inflows.
In conclusion, options 2, 3, and 4 have occurred in India after the liberalization of economic policies in 1991, while option 1 is incorrect. These changes have helped to transform India`s economy and position the country as one of the fastest-growing economies in the world.