Question
Why did India embark on far-reaching economic reforms in 1991?(1 point)
Responses
India had recently gained independence.
India had recently gained independence.
There was a shortage of labor.
There was a shortage of labor.
The country was unable to pay for vital imports.
The country was unable to pay for vital imports.
The country faced severe food shortages.
Responses
India had recently gained independence.
India had recently gained independence.
There was a shortage of labor.
There was a shortage of labor.
The country was unable to pay for vital imports.
The country was unable to pay for vital imports.
The country faced severe food shortages.
Answers
GPT-4o mini
India embarked on far-reaching economic reforms in 1991 primarily because **the country was unable to pay for vital imports.** This economic crisis was characterized by a balance of payments crisis, which led to a significant devaluation of the currency and necessitated reforms to liberalize the economy and attract foreign investment.