Question

Read the passage given below carefully and answer the following questions:

During the Cold War years, India found itself on the opposite side of the divide from the U.S. India’s closest friendship during those years was with the Soviet Union. After the collapse of the Soviet Union, India suddenly found itself friendless in an increasingly hostile international environment. However, these were also the years when India decided to liberalise its economy and integrate it with the global economy. This policy and India’s impressive economic growth rates in recent years have made the country an attractive economic partner for a number of countries, including the U.S.

1. Which were the years of the Cold War period?
2. Explain any two factors responsible for the close relationship between India and the Soviet Union.
3. Give any two examples of economic liberalization that have benefited India.

Answer 1

1. The Cold War lasted from the end of World War II in 1945 to the collapse of the Soviet Union in 1991.
2. The two factors or reasons for the dose relations between India and the USSR are as follows:
   
   1. After gaining independence, India resolved to go after the Socialist model of development, for which it turned to the USSR for assistance and advice.
   2. In 1972, India signed the 20-Year Treaty of Friendship with the Soviet Union in response to the Triangular Alliance of the United States, Pakistan, and China.
3. Some of the advantages of economic liberalization in India are:
   
   1. Exports have contributed to a growth in foreign exchange reserves.
   2. It has enhanced consumer choice as a result of increasing imports and the presence of foreign goods on the market.