Which economic challenges were faced by the Government of Prime Minist

1.	Which economic challenges were faced by the Government of Prime Minister Chandra Shekhar?
Answer» (i) During the tenure of Chandra Shekhar the rate of inflation was 17%. (ii) Economic growth rate had decreased by 1.1%. India had foreign exchange reserves only enough to last for imports for a week. (iii) It had become difficult to pay back its loan and the interest on it. (iv) In May 1991, the government had tried to control the situation by selling some of its gold reserves and by mortgaging some.

Which economic challenges were faced by the Government of Prime Minister Chandra Shekhar?

Answer»

(i) During the tenure of Chandra Shekhar the rate of inflation was 17%.

(ii) Economic growth rate had decreased by 1.1%. India had foreign exchange reserves only enough to last for imports for a week.

(iii) It had become difficult to pay back its loan and the interest on it.

(iv) In May 1991, the government had tried to control the situation by selling some of its gold reserves and by mortgaging some.