Question

Why did the political instability in the Gulf countries impact India's economic interest in 1990?

• A. Gulf countries host the headquarters of WTO and IMF.
• B. Gulf countries are located in an oil-rich region.
• C. Most of the Gulf countries are ruled by dictators.
• D. Gulf countries control the lion's share of the world trade.

Answer 1

The correct option is B Gulf countries are located in an oil-rich region.

Countries like Iraq, Iran, Kuwait have huge crude oil reserve. India has been importing oil from these countries for years. In 1990, this region witnessed the Gulf War, leading to political instability. It resulted in an increase in crude oil prices and impacted India's import bills.