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 reasons can be attributed to a steep rise in the import of petroleum products in India?

Both options, 1 and 2

There is a steep rise in the import of petroleum products. It is used not only as a fuel but also as an industrial raw material. It indicates the tempo of rising industrialisation and a better standard of living. Sporadic price rise in the international market is another reason for the same.