Which among the following was the issue being addressed through the Economic Reforms of 1991 ?

Correct option is B

The Economic Reforms of 1991 in India addressed multiple issues including the depreciation of the Indian rupee, economic policy failures, and a crisis in foreign exchange reserves. These reforms were introduced to stabilize the economy and promote growth through liberalization, privatization, and globalization.
Important Key Points:
1. Economic Crisis: Faced with a severe balance of payments crisis.
2. Depreciation of Rupee: The Indian rupee had significantly depreciated, causing economic instability.
3. Foreign Exchange Reserves: Critically low reserves threatened the country’s ability to pay for imports.
4. Policy Failures: Inefficient economic policies had hindered growth and development.
5. Structural Reforms: Introduced to liberalize the economy and encourage private sector participation.
6. Global Integration: Aimed to integrate India into the global economy.
7. Growth and Stability: Sought to achieve sustainable economic growth and macroeconomic stability.
Information Booster:
 Depreciation of the Indian Rupee: Caused by high fiscal deficits and low reserves.
 Economic Policy Failure: Ineffective policies led to economic stagnation.
 Crisis in Foreign Exchange Reserves: The country had to pledge gold to secure loans.
 All of These: Correct, as multiple factors necessitated the 1991 reforms.