Question : How did the expansion of the state sector during the Five-year Plans impact India's balance of payments?
Option 1: It improved the balance of payments.
Option 2: It had no significant impact.
Option 3: It worsened the balance of payments.
Option 4: It stabilized the balance of payments.
Answer (1)
16th Jan, 2024
Correct Answer: It worsened the balance of payments.
Solution : The expansion of the state sector during the Five-year Plans worsened India's balance of payments, as increased government spending and investments in public sector enterprises led to higher imports and external borrowing.
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