Question

Q21. The Balance of payment (BOP) crisis of India in 1991 was due to

i) Breakup of the soviet – Block

ii) Iraq – Kuwait war

Choose the correct answer

• A. a) i, only
• B. b) ii only
• C. c) Both
• D. d) None

Answer 1

The correct option is C

c) Both

Ans. C

Due to the breakup of soviet Block India lost one of its most important trading partner and India’s exports reduced considerably

The Iraq-kuwait war led to sky rocketing of petroleum prices and also led to drastic decrease in the Remittances sent by Indians in the Middle Eastern region