Increased control of the government over private trade.
Restrictions on foreign investment.
Opening Indian markets to international competition.
Show Solution
The Correct Option isD
Solution and Explanation
Step 1: Compare before and after.
Before 1991: laws protected Indian business from outside competition. After 1991: the market was opened to the world.
Step 2: Read each option as a direction.
Options 1, 2 and 3 all increase control or restrict outsiders, so they describe the earlier policy at best.
Step 3: Check the passage wording.
It says the reforms opened the Indian economy to the world market and aimed at integration into it.
Step 4: Choose.
Only option 4 says this.
Step 5: Why the other options fail.
Option 1 says: Greater state ownership of farms.. This does not fit the idea we settled on, so it cannot be the answer.
Option 2 says: Increased control of the government over private trade.. This does not fit the idea we settled on, so it cannot be the answer.
Option 3 says: Restrictions on foreign investment.. This does not fit the idea we settled on, so it cannot be the answer.
Step 6: Quick check.
Read the chosen option again in full: Opening Indian markets to international competition.. It agrees with the facts above, and each of the other three options clashes with them. So the answer stays the same after this second look.
Final Answer:
Option 4 describes the shift caused by the 1991 reforms.
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