Explanation:

Currency crisis is brought on by a decline in the value of a country's currency. This decline in value negatively affects an economy by creating instabilities in exchange rates, meaning that one unit of a certain currency no longer buys as much as it used to in another currency.  Therefore,  increase in the government expenditure is not related to change in foreign exchange reserves or any currency fluctuations.

A substantial amount of foreign exchange reserves can help to cushion against any risks of currency crisis.

The foreign current earnings of India's IT sector and remittances from abroad would lead more inflow of foreign currencies in the economy and boost the