CUET Preparation Today
Which one of the following crisis triggered the 'New Economic Reforms' of 1991? |
Farmers' Suicides Balance of Payment Crisis Cultural Crisis Food Crisis |
Balance of Payment Crisis |
The correct answer is Option (2) → Balance of Payment Crisis The New Economic Reforms of 1991 were triggered by a severe Balance of Payment Crisis, where India had very low foreign exchange reserves and was unable to pay for essential imports. This led to economic liberalisation, privatisation, and globalisation policies. |
