SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Inflation
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Debt Trap
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Foreign exchange crisis
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All of the above
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Detailed explanation-1: -event began with a slide in the value of the rupee leading up to mid-1991. The authorities at the Reserve Bank of India slowed the decline in value by expending international reserves. With reserves nearly depleted, however, the exchange rate was devalued sharply on July 1 and July 3 against major foreign currencies.
Detailed explanation-2: -Measures Taken by Government to Overcome Balance of Payment Crisis 1991. The Government took certain special measures and steps to overcome the BOP crisis in India. They were: Monetary measures, reforms in the industrial policy, and reforms in the trade policy.
Detailed explanation-3: -Provisional data on the index of industrial production show na increase of 8.4 per cent during 1990-91 compared to 8.6 per cent during 1989-90. On the basis of these tentative estimates, real GDP growth in 1990-91 may be expected to be in the range of 5 per cent.