1991 Indian Economic Crisis
About 1991 Indian Economic Crisis
India faced a severe balance of payments crisis in 1991. Foreign exchange reserves fell to just 3 weeks of imports. India had to airlift gold to London as collateral for an IMF loan. The crisis forced Finance Minister Manmohan Singh to implement sweeping economic reforms, dismantling the License Raj and opening India to foreign investment. Tariffs were slashed, industries were deregulated, and the rupee was devalued. These reforms launched Indias transformation into one of the worlds fastest growing economies. The 1991 reforms are considered the beginning of modern India, shifting from socialism to a market economy.
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