Assertion: In 1991, as a long term measure to resolve the balance of payments crisis, the rupee was devalued against foreign currencies.

Reasoning: Such devaluation led to an increase in the inflow of foreign exchange. 

Assertion (A) is not true but Reasoning (R) is correct.

The first important reform in the external sector was made in the foreign exchange market. In 1991, as an immediate measure to resolve the balance of payments crisis, the rupee was devalued against foreign currencies. This led to an increase in the inflow of foreign exchange. It also set the tone to free the determination of rupee value in the foreign exchange market from government control.