Question
Why did India embark on far-reaching economic reforms in 1991?(1 point)
Responses
The country was unable to pay for vital imports.
The country was unable to pay for vital imports.
There was a shortage of labor.
There was a shortage of labor.
India had recently gained independence.
India had recently gained independence.
The country faced severe food shortages.
Responses
The country was unable to pay for vital imports.
The country was unable to pay for vital imports.
There was a shortage of labor.
There was a shortage of labor.
India had recently gained independence.
India had recently gained independence.
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**. The balance of payments crisis led to a depletion of foreign exchange reserves, prompting the government to initiate reforms to liberalize the economy and attract foreign investments.