Devaluation of the Rupee, as part of the External Sector Reforms in 1991, relates to -

Exchange Rate Stabilisation

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Rationalisation of Tariff Structure

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Quantitative Restrictions

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Foreign Direct Investment

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Solution

The correct option is A Exchange Rate Stabilisation
Prior to 1991, Indian currency followed fixed exchange rate system but as a part of the external sector reforms 'devaluation of the rupee' was proposed which made Indian currency exchange rate system very flexible and resulted in exchange rate stabilization as country was infected by inflation at that time.

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