Question

Which of the following is not a result of the Structural Adjustment Programme?

• A. Foreign goods influx to India
• B. Privatisation of public amenities
• C. Reduction in foreign investments
• D. Reduction in government expenditures in certain sectors

Answer 1

The correct option is C Reduction in foreign investments

The requirements of the Structural Adjustment Programme included drastic reduction of government expenditure, including cuts in subsidies to farmers, expenditure on public services, and health. It also reduced restrictions and taxes on import of foreign goods and reduced the restrictions on foreign investments in India. It also insisted on opening of many sectors of the economy like telephone, banking, and airlines to private investors.