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Question

Q.Which of the following problems did India face before the 4th general elections ?

(i) Failure of monsoon
(ii) Food crisis
(iii) Heavy rainfall
(iv) Depletion of foreign exchange reserves Choose the correct option. (A) (i),
(ii) (B) (iii),
(iv) (C) (i), (ii),
(iv) (D) (ii), (iii), (iv)
CBSECBSE Class XII Board 2024MCQ· 1mImportance★★★★★
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Before the 4th general elections (1967), India faced a severe food crisis due to monsoon failure and a sharp depletion of foreign exchange reserves — heavy rainfall was not a problem.

The 4th general elections in India were held in 1967, and the country entered that election year under considerable economic strain. The mid-1960s were a difficult period for the Indian economy. Two consecutive years of drought — 1965 and 1966 — had led to a failure of the monsoon, which in turn caused a sharp drop in agricultural output. This directly created a food crisis, as grain production fell far short of the country's needs. India had to rely heavily on food imports, including under the PL-480 agreement with the United States, which came with political strings attached.

At the same time, India's foreign exchange reserves were being drained. The war with Pakistan in 1965, the suspension of foreign aid, and the need to import food grains and other essentials all put immense pressure on the country's foreign currency holdings. By 1966, the rupee was devalued, which further strained the economy. So the depletion of foreign exchange reserves was indeed a major problem. …

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