3 Indian & AP Economy and Planning · 3.1.2 Economic reforms since 1991

3.1.2.1 The 1991 balance of payments crisis and stabilisation

In mid-1991 India nearly ran out of foreign exchange, took IMF and World Bank support, and used the crisis to begin the stabilisation and structural reforms that ended the licence-permit regime.

  • APPSC Group 1
  • Advanced level
  • 6 min read
  • Full course

Key terms

  • 1991 crisis
  • balance of payments
  • forex reserves
  • devaluation
  • stabilisation
  • structural reforms
  • IMF
  • Gulf War

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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