The 1991 economic reforms in India, often encapsulated by the acronym 'LPG' (Liberalization, Privatization, and Globalization), were transformative for the country's economic trajectory. Which of the following statements best evaluates the immediate implications of these reforms on the Indian economy?
1
The reforms solely catered to the interests of multinational corporations, leading to a decline in the importance of domestic industries.
2
The reforms immediately resolved India's fiscal and trade deficits, placing it on a path of surplus budgets.
3
While the reforms led to increased foreign direct investments and a shift towards a market-oriented economy, they also resulted in challenges such as rising income inequality and debates on national economic sovereignty.
4
The reforms predominantly focused on agricultural policies, leading to a significant boost in agricultural exports.