Describe India’s economic situation during 1990-91.

India was facing an economic crisis in 1991. The roots of the economic crisis of 1991 are in 1985 when India facing balance of payment problems and import swelled. At that time India was facing twin deficit (twin deficit means current account deficit and fiscal deficit)-

a. the performance of the public sector was dissatisfactory

b. The huge deficit in the trade balance

c. Falling reserves of foreign exchange

d. High inflation

e. High budget deficit