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 faced severe food shortages.
The country faced severe food shortages.
The country was unable to pay for vital imports.
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 faced severe food shortages.
The country faced severe food shortages.
The country was unable to pay for vital imports.
Answers
GPT-4o mini
The correct response is: **The country was unable to pay for vital imports.**
In 1991, India faced a severe balance of payments crisis, which made it difficult for the country to pay for essential imports, leading to the need for significant economic reforms.
In 1991, India faced a severe balance of payments crisis, which made it difficult for the country to pay for essential imports, leading to the need for significant economic reforms.