Economics · Indian Economy

What was the main reason behind India's economic crisis of 1991?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Complete failure of the RBI and Government mechanism
2Losses in the Bombay Stock Exchange (BSE)
3Inability to repay foreign borrowings (balance of payments crisis)✓
4High domestic inflation

Correct answer

Inability to repay foreign borrowings (balance of payments crisis)

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