Question

What was one major shift caused by the economic reforms of 1991?

• A. Greater state ownership of farms.
• B. Increased control of the government over private trade.
• C. Restrictions on foreign investment.
• D. Opening Indian markets to international competition.

Hint:

The reforms ended protection from outside competition.

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
The question asks what major change the 1991 reforms brought, and the passage says they opened up the economy to the world market.

Step 2: Key point from the passage.
Earlier, the state protected Indian business from global competition. The reforms broke with that policy and aimed at integration into the global market.

Step 3: Check option 1.
The passage does not mention any rise in state ownership of farms. Agriculture was only one sector that saw reform, so this is wrong.

Step 4: Check option 2.
More government control over private trade is the old policy that the reforms ended. So this is wrong.

Step 5: Check option 3.
Restrictions on foreign investment were eased, not added. Foreign investment is named as a reformed area, so this is wrong.

Step 6: Check option 4.
Opening Indian markets to international competition is the main shift described. This is right.

Final Answer:
The major shift was opening Indian markets to global competition, option 4. \[ \boxed{\text{Option 4}} \]