1991 India economic crisis

The 1991 India economic crisis was a major turning point in the Indian economy, marked by a severe balance of payments crisis, high inflation, and a plummeting foreign exchange reserve. Triggered by several factors, including the Gulf War, which disrupted oil supplies and inflamed inflation, India was forced to devalue its currency and seek assistance from the International Monetary Fund (IMF). Faced with imminent bankruptcy, the Indian government initiated a series of economic reforms that liberalized the economy, reduced import tariffs, and encouraged foreign investment. These reforms set the foundation for India's transformation into one of the world's fastest-growing major economies, leading to profound changes in its economic landscape and policy framework.