Question

Economic reforms of 1991 were introduced to ___________.

• A. Social structure of the country
• B. To demolish Zamindari system
• C. Maintain balance of payment
• D. All of these

Answer 1

Answer: (C)

Maintain balance of payment

In 1991, India met with an economic crisis relating to its external debt. India approached the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF).

India agreed to the conditionalities of IBRD and IMF. On the basis of these conditions, Economic reforms of 1991 were introduced. These measures were introduced to maintain the balance of payment and to bring inflation under control.