Correct option is C
The Correct Answer is: (c) 1991
Explanation:
India faced a severe Balance of Payments (BoP) crisis in 1991, caused by factors such as a high fiscal deficit, rising inflation, and the Gulf War that spiked oil prices.
Explanation:
India faced a severe Balance of Payments (BoP) crisis in 1991, caused by factors such as a high fiscal deficit, rising inflation, and the Gulf War that spiked oil prices.
The crisis led to foreign exchange reserves falling to dangerously low levels — barely enough to finance two weeks of imports.
Information Booster:
• IMF and World Bank played a key role in supporting India’s economic restructuring.
• Dr. Manmohan Singh was the Finance Minister during the 1991 reforms.
• India undertook major economic reforms in 1991 under the leadership of Prime Minister P.V. Narasimha Rao.
• The economic reforms of 1991 ended the License Raj.
• Reforms increased GDP growth, foreign investment, and economic liberalization.
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