Financial Awareness - Risk, Stability & Emerging Finance
What was the primary objective behind introducing the Economic Reforms of 1991 in India?
What was the primary objective behind introducing the Economic Reforms of 1991 in India?
easy Q1 of 15
Step-by-Step Solution
Step 1: Understand the context of 1991 reforms
The reforms were introduced to address a severe economic crisis faced by India in 1991.Step 2: Analyze the options
Overcoming the Balance of Payments crisis was the key objective; nationalization and tariff increase contradict liberalization goals, and reducing FDI is opposite to globalization.Final Answer:
To overcome the Balance of Payments crisis → Option AQuick Check:
Objective of 1991 reforms = Overcome Balance of Payments crisis ✅
Quick Trick: Link reforms with 1991 foreign exchange crisis.
Common Mistakes:
- Confusing reforms with protectionist or nationalization policies.
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