Download the BYJU'S Exam Prep App for free IAS preparation videos & tests - Download the BYJU'S Exam Prep App for free IAS preparation videos & tests -

Why was the rupee devalued in 1991?

India had to go for a devaluation of the Indian rupee because India was facing a massive economic crisis. India had very limited foreign reserves to carry out international trade for a few days. India was facing a balance of payment crisis. You can read about the Balance of Payment Crisis, 1991 – Causes and Measures to Control it in the given link.

Exports from India had reduced, India’s oil import bills increased massively, high current account deficit, loss of investors confidence were some of the reasons behind India’s economic crisis.

Further readings:

  1. Forex Reserves – Meaning, Importance, Advantages (Notes for UPSC IAS exam)
  2. New Economic Policy of 1991 – Objectives, Liberalisation, Privatisation, Globalisation

Related Links

Foreign Direct Investment (FDI) – UPSC Economy Notes

Foreign Exchange Management Act (FEMA) & Foreign Exchange Regulation Act (FERA)

Previous Years Economics Mains Questions for UPSC General Studies Paper – 3

Economic Reforms – Journey & Road Ahead: RSTV – Big Picture

Economic Reforms of 1991 in India

Topic-Wise GS 3 Questions for UPSC Mains

UPSC Mains General Studies Paper-III Strategy, Syllabus & Structure

Demonetisation Essay – Concepts, Merits, Demerits & Effects Of Demonetisation in India

Comments

Leave a Comment

Your Mobile number and Email id will not be published.

*

*