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Question No. 287Interactive Test Mode
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Q287. Assertion (A) : The rate of growth of India’s exports has shown an appreciable increase after 1991. Reason (R) : The Govt. of India has resorted to devaluation.

Assertion (A) : The rate of growth of India’s exports has shown an appreciable increase after 1991. Reason (R) : The Govt. of India has resorted to devaluation.

Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

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Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2000 • Indian Economy

Correct Answer: Option (B) — BothA and Raretrue but R is not a correct explanation ofA

Concept & Option Breakdown

Standard Reference Verified

Assertion (A) is true: Following the economic reforms of 1991, India's export growth accelerated significantly due to tariff reductions, abolition of industrial licensing, and integration with the global economy.

Reason (R) is true: The Government devalued the rupee in two steps in July 1991 by nearly 20% to correct currency overvaluation.

However, Reason (R) is not the complete or sole explanation of Assertion (A), as sustained long-term export expansion was driven by comprehensive structural and trade policy reforms, not merely one-off devaluation.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2000 (Q287)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (B) — BothA and Raretrue but R is not a correct explanation ofA

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Frequently Asked Questions — UPSC Prelims 2000 Q287

What is the official answer for UPSC Prelims 2000 GS Paper I Question 287 (Indian Economy)?

The official UPSC answer key for this 2000 Indian Economy (Banking & Financial System) question is Option (B): "BothA and Raretrue but R is not a correct explanation ofA". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2000 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

To solve Banking & Financial System questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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