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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.


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 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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