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.

The country faced severe food shortages.
The country faced severe food shortages.

India had recently gained independence.
India had recently gained independence.

There was a shortage of labor.
There was a shortage of labor.

1 answer

The correct response is:

The country was unable to pay for vital imports.

In 1991, India faced a balance of payments crisis, which led to a situation where it could not pay for essential imports, prompting the government to initiate far-reaching economic reforms.