Question

Assertion (A): India's development was hindered greatly.

Reason (R): The Iraq–Kuwait war happened in 1991.

Choose the correct option based on the two statements given above.

• A. Both A and R are true, and R is the correct explanation of A.
• B. Both A and R are true, but R is not the correct explanation of A.
• C. A is true, but R is false.
• D. Both A and R are false.

Answer 1

The correct option is A Both A and R are true, and R is the correct explanation of A.

In 1991, a war broke out between Iraq and Kuwait, both major oil producers of the world. The war led to a surge in oil prices, which affected India as well. However, India did not have sufficient foreign currency to pay for these imports. This put India in a foreign exchange crisis as it could not meet its oil requirements.