Question : Statement 1: The 1991 economic policy aimed to address the balance of payments crisis in India.
Statement 2: The economic reforms of 1991 were initiated under the leadership of Rajiv Gandhi.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Correct Answer: Both statements are true.
Solution : The correct answer is (a) Both statements are true.
Statement 1 is true: The 1991 economic policy in India was introduced to address the balance of payments crisis. India was facing severe economic difficulties, including a high fiscal deficit and a balance of payments crisis, which necessitated the implementation of economic reforms.
Statement 2 is also true: The economic reforms of 1991 were initiated under the leadership of Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh. Rajiv Gandhi was the Prime Minister of India from 1984 to 1989 and was not in power during the period when the economic reforms were implemented.
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