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What was the primary economic challenge faced by India during the 1980s?
  • a)
    A surplus in government revenue
  • b)
    A balance of payments crisis
  • c)
    Declining foreign investment
  • d)
    High levels of household savings
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What was the primary economic challenge faced by India during the 1980...
During the 1980s, India experienced a significant balance of payments crisis, driven largely by rising fiscal deficits and increasing government debt. This period highlighted the risks associated with persistent fiscal imbalances, as the government had to borrow extensively to finance developmental expenditures, which worsened the overall economic situation.
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What was the primary economic challenge faced by India during the 1980s?a) A surplus in government revenueb) A balance of payments crisisc) Declining foreign investmentd) High levels of household savingsCorrect answer is option 'B'. Can you explain this answer?
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