BPSC 45th Exam Prelims 2003 Solved Paper

- India faced an economic crisis in 1991. It is claimed as the toughest time for Indian economy.
- During this phase fiscal deficit was $7.8\%$ of GDP, interest payment was eating $39\%$ of the total revenue collection of the government, Current Account Deficit (CAD)was $3.69\%$ of GDP and WPI inflation was hovering around $14\%$.
India was about to be declared defaulter by the international community. In order to tackle all these problems government devalued Indian currency and the exchange rate became $1\mathit{U}\mathit{S}\mathit{D}=24.58\mathit{I}\mathit{N}\mathit{R}$