Q. Which of the following are the reasons for the economic crisis in 1991?
- Huge fiscal imbalances
- High level of borrowing
- High Exports
- High Imports
Choose the correct option from the codes given below:
Answer:
1,2 and 4 only
Notes: India experienced its worst economic crisis in 1991. A high fiscal deficit combined with a high level of borrowing lead to a crisis. The exports were low and imports were high. India liberalized its economy to deal with the situation.