The correct option is 1 and 3 only because both the foreign currency earnings from India's IT sector and the remittances from Indians abroad contribute positively to the country's foreign exchange reserves. A robust inflow of foreign currency enhances India’s ability to manage its external debt and stabilizes the currency, thereby reducing the risk of a currency crisis. In contrast, increasing government expenditure without a corresponding increase in revenue can lead to fiscal deficits, which may undermine investor confidence and exacerbate currency volatility.