1991 Indian economic crisis

The 1991 Indian economic crisis was a significant balance of payments crisis that led to profound economic reforms in India. Triggered by a combination of factors, including high fiscal deficits, rising oil prices, and a substantial decline in foreign exchange reserves, the crisis reached its peak in July 1991. The Indian government, facing an imminent default on its international obligations, sought assistance from the International Monetary Fund (IMF), which imposed stringent economic conditions. In response, the Indian government implemented wide-ranging liberalization measures, including deregulation, reduction of import tariffs, and encouragement of foreign direct investment, ultimately transforming the Indian economy into a more market-oriented system. These reforms laid the groundwork for sustained economic growth in subsequent decades.