Q. Which year is known for BOP crisis in Indian Economy?
Answer: 1991
Notes: The BOP crisis in the Indian economy refers to a balance of payments crisis that occurred in 1991. The crisis was caused by a combination of factors, including a sharp increase in global oil prices, a drought that hit India's agricultural sector, and rising budget and trade deficits. As a result of these factors, India's foreign exchange reserves dwindled and it became unable to pay for its imports. This sparked a financial crisis and led to a sharp devaluation of the Indian rupee.
In response to the crisis, the Indian government sought assistance from the International Monetary Fund (IMF) and other international organizations. It also implemented a series of economic reforms, including liberalizing its foreign exchange controls, reducing import tariffs, and opening up its economy to foreign investment. These measures helped to stabilize the economy and bring the BOP crisis under control. However, the crisis had a significant impact on the Indian economy and it underscored the need for ongoing economic reforms in order to maintain financial stability.
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