Question:medium

Arrange the following major milestones of Indian and global economic development in the correct ascending chronological sequence:
  • Implementation of the Goods and Services Tax (GST) in India
  • Launch of the New Economic Policy (NEP) in India
  • Establishment of the World Trade Organization (WTO)
  • Enforcement of the General Agreement on Tariffs and Trade (GATT)

Show Hint

Remember that India's domestic LPG market opening in 1991 (NEP) directly prepared the country to become a founding member of the global WTO structure when it officially launched in 1995.
Updated On: Jun 3, 2026
  • \( 4 \rightarrow 2 \rightarrow 3 \rightarrow 1 \)
  • \( 4 \rightarrow 3 \rightarrow 2 \rightarrow 1 \)
  • \( 2 \rightarrow 4 \rightarrow 3 \rightarrow 1 \)
  • \( 4 \rightarrow 2 \rightarrow 1 \rightarrow 3 \)
Show Solution

The Correct Option is A

Solution and Explanation

Step 1: Understanding the Concept:
Chronological ordering questions are designed to test a student's grasp of historical timelines and the evolution of economic policy both domestically and globally.
To solve this, one must identify the exact implementation dates of major treaties and domestic reforms.
Historical context often provides clues; for example, global trade agreements usually move from simpler tariff reductions to complex institutional frameworks.
Step 2: Detailed Explanation:
Let us examine each event in detail to establish the timeline:
1. Enforcement of GATT (4):
The General Agreement on Tariffs and Trade (GATT) was a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas.
It was signed by 23 nations in 1947 in Geneva and came into force on January 1, 1948.
This was part of the post-World War II global economic restructuring.
2. Launch of NEP in India (2):
The New Economic Policy of 1991 was a set of economic reforms aimed at liberalizing the Indian economy.
Facing a severe Balance of Payments crisis where foreign exchange reserves had dropped to barely enough for two weeks of imports, the government under P.V. Narasimha Rao introduced these reforms in July 1991.
This period is marked by Liberalization, Privatization, and Globalization (LPG).
3. Establishment of the WTO (3):
The World Trade Organization was the result of the Uruguay Round of trade negotiations (1986–94).
It was established via the Marrakesh Agreement signed in April 1994, and it officially replaced GATT on January 1, 1995.
The WTO was an upgrade from GATT as it had a more robust dispute settlement mechanism and covered services and intellectual property.
4. Implementation of GST in India (1):
The Goods and Services Tax (GST) is a comprehensive indirect tax on manufacture, sale, and consumption of goods and services throughout India.
It was a landmark reform aimed at creating a single unified market.
After years of political negotiation and constitutional amendments, it was officially launched at midnight on July 1, 2017.
Step 3: Final Answer:
Mapping these years:
- 1948: Enforcement of GATT (4)
- 1991: Launch of NEP (2)
- 1995: Establishment of WTO (3)
- 2017: Implementation of GST (1)
The sequence is 4 \(\rightarrow\) 2 \(\rightarrow\) 3 \(\rightarrow\) 1.
Thus, Option (A) is correct.
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