On which date in 1991 was the Indian rupee devalued?

Correct option is D

Ans.(d) 1st July

The Indian rupee was devalued on 1st July 1991 as part of the economic liberalization reforms introduced by the Government of India under Prime Minister P. V. Narasimha Rao and Finance Minister Dr. Manmohan Singh.

• The devaluation was done in two stages (July 1 & July 3, 1991).
• It was aimed at addressing India's balance of payments crisis and boosting exports.
• The rupee was devalued by about 18-19% against major foreign currencies.
• This was a key measure under the structural adjustment program recommended by the IMF and World Bank.

• India faced a severe economic crisis in 1991, with foreign exchange reserves falling below $1 billion.
• The government introduced liberalization, privatization, and globalization (LPG) reforms to stabilize the economy.
• Devaluation made Indian exports cheaper and more competitive in global markets.
• The exchange rate system shifted from a fixed to a more market-determined mechanism.
• This reform marked the beginning of India's transition to a more open and globalized economy.