Economic Awareness - Sectors of Indian Economy
Which of the following was a major cause that compelled India to initiate globalization reforms in 1991?
Which of the following was a major cause that compelled India to initiate globalization reforms in 1991?
easy Q3 of 15
Step-by-Step Solution
Step 1: Identify the trigger
The question asks for the major cause that forced India to start globalization reforms in 1991.Step 2: Analyze options
High fiscal surplus and excess foreign exchange reserves are positive indicators, not causes for reforms. The Balance of Payments crisis in 1991 created a severe economic emergency, necessitating reforms.Final Answer:
Balance of Payments crisis → Option BQuick Check:
Balance of Payments crisis = correct ✅
Quick Trick: Balance of Payments crisis forced reforms in 1991.
Common Mistakes:
MISTAKES- Confusing fiscal surplus or reserves as reasons for reforms.
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