Economics · Third Five-Year Plan
What primary structural macroeconomic challenges led India to increase its borrowings from the International Monetary Fund (IMF) during the Third Five-Year Plan period?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The successful implementation of import-substitution policies leading to zero trade
- 2Sudden decline in public investment and massive deflationary pressures
- 3A growing trade deficit and mounting external debt repayment obligations✓
- 4Rapid appreciation of the Indian Rupee and surplus foreign exchange reserves
Correct answer
A growing trade deficit and mounting external debt repayment obligations
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