which of the following was a cause behind the adoption of new economic policy in 1991? 1 huge fiscal deficit 2 adverse balance of payment 3gulf war 4all of these .
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Answer: The crisis was caused by currency overvaluation; the current account deficit and investor confidence played a significant role in the sharp exchange rate depreciation. ... Precipitated by the Gulf War, India's oil import bill swelled, exports slumped, credit dried up, and investors took their money out.
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Answer:
The Gulf war, The negative balance of payments and Increase in fiscal deficit all are the cause behind the adoption of new economic policy in 1991.
Explanation:
- 17 industries were reserved only for the public sector before the deregulation of the industrial sector in 1991.
- Globalization is the policy that helps integrate a domestic economy with the world economy.
- Many products from small-scale industries were De-reserved after the industrial sector was deregulated in 1991.
- To solve the balance of payment crisis in 1991, the Indian Rupee was Devalued against foreign currencies.
- The industrial license was abolished for most industries except Liquor during the 1991 reforms.
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