In 1991, the country met with an economic crisis which related to increased external debt. Due to which of the following reason, the crises compounded drastically?

Rising internal disturbances Rising conflicts in opposing parties Rising prices of essential goods None of the above

Rising prices of essential goods

As the government was unable to manage the external debt, India faced a drastic economic crisis during 1991. It was further compounded by the rising prices of the essential commodities. If we dig deeper, we will find that the origin of financial crisis could be traced from the inefficient management of the Indian economy in 1980s.