DMPQ:Economic reforms of 1991 was the major landmark in Indian Economic History. Outline the reasons which forced India for economic reforms.

The  major reasons are:

  • Rise in Prices and galloping inflation. It surged from 6.7% to near about 16%
  • Increase in the Fiscal deficit. Increase in non -development expenditure.
  • Adverse Balance of payment and pressure on Balance of Payment.
  • Iran-Kuwait war led to increase in Petrol price and hence pressure on Indian Imports.
  • Adopted approach of socialism failed. Efficiency of PSU’s were dismal.
  • Fall in Foreign exchange reserve increased the vulnerability. It also created the macroeconomic instability.
KPSC Notes brings Prelims and Mains programs for KPSC Prelims and KPSC Mains Exam preparation. Various Programs initiated by KPSC Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––