question_answer

The New Economic Policy (1991) was launched in the background of the following economic indicators:

1. India's foreign exchange reserves had fallen to US 1 billion.

2. The fall of the Soviet Union had deprived India of almost a quarter of its export market.

3. There was negative growth in real GDP.

Indian rupee had to be devalued by 45 per cent.

A) 1, 2, 3 and 4     

B) 1 only

C) 1 and 2           

D) 1, 2 and 3