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Question
Why Did We Need Economic Reforms in 1991?
Why Did We Need Economic Reforms in 1991?
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Solution
India was under a severe Balance of Payments (BoP) deficit in 1991 and also witnessed high fiscal deficit, foreign exchange reserves became minimal and India needed to borrow funds from IMF in exchange for gold. For this reason, the government adopted the LPG policy or the new economic policy that brought about positive changes in the economy.
Also see:
- MCQs on Liberalisation
- MCQs on Globalisation
- Advantages of Globalisation
- Objectives of Privatisation
Stay connected to BYJU’S for more such questions and answers.
India was under a severe Balance of Payments (BoP) deficit in 1991 and also witnessed high fiscal deficit, foreign exchange reserves became minimal and India needed to borrow funds from IMF in exchange for gold. For this reason, the government adopted the LPG policy or the new economic policy that brought about positive changes in the economy.
Also see:
- MCQs on Liberalisation
- MCQs on Globalisation
- Advantages of Globalisation
- Objectives of Privatisation
Stay connected to BYJU’S for more such questions and answers.
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