Which of the following was NOT an effect of devaluation of the rupee in 1991 to make an international adjustment of Indian currency?

Correct option is A

The correct answer is (a) Increased imports. The devaluation of the rupee in 1991 made Indian exports cheaper and helped to increase them, but it did not cause increased imports.
Incorrect Options Explanations:
· (b) Increased exports: The devaluation made Indian goods cheaper in foreign markets, which boosted exports.
· (c) Raised the influx of foreign capital: A weaker rupee made it more attractive for foreign investors to put their money in India, increasing the flow of foreign capital.
· (d) Decreased imports: The devaluation made imports more expensive, leading to a decrease in their demand.
Information Booster:
1991 Reforms:
· Prime Minister: P. V. Narasimha Rao
· Finance Minister: Manmohan Singh
· The reforms aimed to fix India’s economic crisis and focused on liberalization, privatization, and globalization of the economy.
· LPG Reforms (Liberalization, Privatization, Globalization) were key to these changes, opening India to the global market.