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What was one of the reasons for the economic reforms in India in 1991?
  • a)
    To increase reliance on foreign imports.
  • b)
    To reduce poverty and inequality in the country.
  • c)
    To promote international trade and cooperation.
  • d)
    To overcome a severe economic crisis.
Correct answer is option 'D'. Can you explain this answer?
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What was one of the reasons for the economic reforms in India in 1991?...
One of the main reasons for the economic reforms in India in 1991 was to overcome a severe economic crisis. India was facing a balance of payments crisis and was on the verge of bankruptcy. The government had limited foreign exchange reserves and was unable to finance its imports. In order to secure a bailout from the International Monetary Fund (IMF), India had to implement economic reforms. These reforms aimed to liberalize the economy, reduce import tariffs, attract foreign investment, and promote market-oriented policies. The reforms were crucial in pulling the country out of the economic crisis.
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What was one of the reasons for the economic reforms in India in 1991?a)To increase reliance on foreign imports.b)To reduce poverty and inequality in the country.c)To promote international trade and cooperation.d)To overcome a severe economic crisis.Correct answer is option 'D'. Can you explain this answer?
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