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UPSC 2000: Assertion (A): The rate of growth of India’s exports has shown an appreciable increase after 1991. Reason (R): The Government of India has resorted to devaluation.
(a)Both A and R are true, and R is the correct explanation of A
(b)Both A and R are true, but R is not a correct explanation of A
(c)A is true, but R is false
(d)A is false, but R is true
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Not attemptedCorrect Answer: (b) Both A and R are true, but R is not a correct explanation of A
India’s merchandise-export growth accelerated after the 1991 liberalisation—Assertion A is true. The rupee was sharply devalued in July 1–3 1991 (about 18 % against the US $), so Reason R is factually true. However, higher export growth owed to a package of reforms—trade liberalisation, exchange-rate marketisation, duty drawbacks, EPCG etc.—not devaluation alone; therefore R is not the full or direct explanation of A. ([focusias.in](https://focusias.in/upsc-general-studies-prelims-paper-2000/))
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Frequently Asked Questions
What is the correct answer to this UPSC 2000 Indian Economy question?▼
The correct answer is option (b): Both A and R are true, but R is not a correct explanation of A. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this External Sector & Balance Of Payments question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2000, GS Paper 1, as Question 88. It falls under Indian Economy > External Sector & Balance Of Payments.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from External Sector & Balance Of Payments?▼
UPSC has asked 49 questions from External Sector & Balance Of Payments (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.