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Social Science — CBSE Class 10 board question

Q1. [3]
How did the trade policy implemented in 1991 stimulated the globalization in India ? Explain with example.
Previously asked in CBSE board exam
2025 32/4/1 Q27
Generated by claude-sonnet-4-6 · 2026-06-15 06:59 · grounding rag
Model Answer

Starting around 1991, India removed barriers on foreign trade and foreign investment — this is known as liberalisation. The government decided that Indian producers should compete globally, which would improve their quality and performance.

This policy stimulated globalisation in the following ways:

Example: With liberalisation, Chinese toys could enter Indian markets. Indian buyers got more choices at lower prices, while Chinese manufacturers expanded their business — showing how markets of two countries became integrated through trade.

Source: Chapter 4 — Liberalisation of Foreign Trade and Foreign Investment Policy

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Explanation

Examiners expect three things for 3 marks: (1) definition of liberalisation/1991 policy, (2) at least two effects on trade/investment, and (3) a relevant example. The Chinese toy example is directly from the textbook and is the safest to use. Avoid writing too much — 3 marks = roughly 3 key points. The word "stimulated" in the question is a cue to explain how the policy caused globalisation, not just what globalisation is.

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Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.