India faced serious food shortages during the 1950s and 1960s. The major item of import at that time was food grain, capital goods, machinery and equipment. The balance of payment was adverse as imports were more than export in spite of all the efforts of import substitution. After the 1970s, food grain import was discontinued due to the success of the Green revolution but the energy crisis of 1973 pushed the prices of petroleum, and the import budget was also pushed up.

Which of the following incident was responsible for pushing up the import budget in 1973?

Energy Crisis

After the 1970s, food grain import was discontinued due to the success of the Green revolution but the energy crisis of 1973 pushed the prices of petroleum, and the import budget was also pushed up. Foodgrain import was replaced by fertilisers and petroleum.