Which one of the following indicates that India is a fast-growing economy?
- APolicy reforms
- BDigital transformation
- CIncreasing FDI
- DAll of the above
Show answer and explanation
Correct answer: (d) All of the above
Explanation
All three are signs of a fast-growing economy:
- Policy reforms: liberalisation since 1991 and later reforms such as the Insolvency and Bankruptcy Code (2016) and the Goods and Services Tax (2017) improved efficiency and investor confidence;
- Digital transformation: Aadhaar, UPI payments, direct benefit transfers and e-governance (India's digital public infrastructure) raised productivity and financial inclusion;
- Increasing FDI: rising foreign direct investment shows that investors expect growth, and it brings capital, technology and jobs.