Which of the following was NOT one of the factors leading to the economic reforms in 1991?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. There was stagflation in the economy.
The factor that was NOT a leading cause of the economic reforms in India in 1991 was stagflation. Stagflation, characterized by high inflation and stagnant economic growth, was indeed a concern during that period. However, the primary triggers for the reforms included a balance of payments crisis, rising fiscal deficits, and external pressures from institutions like the IMF. The urgency to stabilize the economy and promote liberalization led to significant policy changes, rather than stagflation alone being a direct catalyst for the reforms.