Choose the given statement is True/False

The negative aspect of India's development strategy prior to 1991 relating to the bad performance of the public sector was the only factor to create the need for a change in economic policy.

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True

False

answer is B.

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Detailed Solution

The statement is false.
The factors responsible are discussed below. In June 1991, there was a foreign exchange crisis in the country. The balance of payment deficit continuously increased from 1980-81. There was a sharp price rise in petrol. The country is suffering from a lot of fiscal deficits. There was an increase in prices of the commodities of almost everything, including the essential ones. India was also facing significant problems at that time, such as unemployment, poverty, slow economic growth, shortage of capital, and technological backwardness.
There are other factors as well that lead to the change in economic policy.

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