In 1991, the Indian rupee was devalued in how many steps?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 2.
In 1991, the Indian rupee was devalued in two steps. The first devaluation occurred on July 1, 1991, by about 9%, followed by a second devaluation on July 3, 1991, by approximately 11%. These steps were taken as part of a broader economic reform package to address a severe balance of payments crisis and to stabilize the economy. The combined devaluation of around 18-20% helped improve export competitiveness and attract foreign investments.