1.

Why were reforms introduced in India?

Answer»

The economic crisis at the end 1980’s created more hurdles in the process of growth and development in India, hence it resulted with introduction economic reforms.

The causes for introducing new economic reforms are:

  • The Government expenditure was more than its revenue.
  • The current account deficit was more than 2.5%
  • The fiscal deficit increased to 8.5%
  • Inflation was also one of the main cause
  • A sharp increase in imports caused decline in foreign exchange reserves.


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