Which of the following developments were responsible for BoP crisis of 1991 in India with respect mid 1980s?
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Which of the following developments were responsible for BoP crisis of 1991 in India with respect mid 1980s?
Code:
The correct option is A 1 and 2 only
(Source: NCERT XI) There was remarkable growth during 1980s in both Industrial and agriculture. Thus option 3 and 4 cannot be correct. 1 and 2 are valid reasons and hence (a) option is correct.
Extra information:
The origin of financial crisis of 1991 can be traced from inefficient management of Indian economy in the 1980s. During the period government was spending a large share of its income one areas which do not provide immediate returns such as social sector and defence. At time public sector was also not earning high income our Foreign exchange borrowed from other countries and international institutional was spent on meeting consumption. Thus the higher current account deficit and borrowing were among the reasons led to 1991 crisis.
1 and 2 only
(Source: NCERT XI) There was remarkable growth during 1980s in both Industrial and agriculture. Thus option 3 and 4 cannot be correct. 1 and 2 are valid reasons and hence (a) option is correct.
Extra information:
The origin of financial crisis of 1991 can be traced from inefficient management of Indian economy in the 1980s. During the period government was spending a large share of its income one areas which do not provide immediate returns such as social sector and defence. At time public sector was also not earning high income our Foreign exchange borrowed from other countries and international institutional was spent on meeting consumption. Thus the higher current account deficit and borrowing were among the reasons led to 1991 crisis.
