Economics · Indian Economy - 1991 Reforms

What was the immediate cause for the rapid depletion of foreign exchange reserves that triggered the Indian financial crisis in 1991?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The complete stoppage of rupee trade by the Soviet Bloc
2A sharp rise in the international prices and imports of oil and petroleum products due to the Gulf War✓
3A sudden surge in non-oil imports
4Domestic political instability and policy uncertainty

Correct answer

A sharp rise in the international prices and imports of oil and petroleum products due to the Gulf War

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