Question

(a)(i) “Under the liberalisation measures taken by the Government of India, financial sector reforms were extremely crucial.”
Reject or support the given statement with valid arguments.

Hint:

Support financial sector reforms with evidence of improved banking efficiency and FDI inflows.

Answer 1

Encouraged competition among banks and financial institutions, improving efficiency and customer services. Attracted foreign direct investment (FDI), boosting capital inflows. Strengthened regulatory mechanisms under the Reserve Bank of India, ensuring financial stability.