Which of the following has/have occurred in India after its liberalisation of economic policies in 1991?

1. Share of agriculture in GDP increased enormously.

2. Share of India’s exports in world trade increased.

3. FDI inflows increased.

4. India’s foreign exchange reserves increased enormously.

Select the correct answer using the codes given below:

The correct answer is 2, 3 and 4 only.

Let us analyze each statement step-by-step regarding the economic changes in India following the 1991 economic reforms (Liberalisation, Privatisation, and Globalisation - LPG):

Statement 1: Share of agriculture in GDP increased enormously.
This statement is incorrect. Post-1991 liberalisation, the share of the agriculture sector in India's GDP continuously declined, while the service and industrial sectors experienced rapid growth. While agriculture still employs a significant portion of the population, its proportional contribution to the national GDP decreased significantly over the decades following liberalisation.

Statement 2: Share of India’s exports in world trade increased.
This statement is correct. Economic reforms opened up Indian markets, integrated India into global supply chains, removed trade restrictions, and enhanced manufacturing and service exports (especially IT and software services). As a result, India's share in global exports grew steadily after 1991.

Statement 3: FDI inflows increased.
This statement is correct. Liberalisation relaxed foreign investment regulations, allowing Foreign Direct Investment (FDI) via automatic approval routes in most sectors. This led to a substantial increase in foreign investment inflows into India.

Statement 4: India’s foreign exchange reserves increased enormously.
This statement is correct. In 1991, India faced a severe balance-of-payments crisis with foreign exchange reserves barely sufficient to cover two weeks of imports. Post-reforms, due to increased FDI, FPI (Foreign Portfolio Investment), external commercial borrowings, foreign remittances, and export earnings, India's forex reserves grew tremendously from less than $6 billion in 1991 to hundreds of billions of dollars in subsequent decades.

Therefore, statements 2, 3, and 4 are correct, making 2, 3 and 4 only the correct option.