1990 Indian economic crisis

The 1990 Indian economic crisis was a significant financial downturn caused by a balance of payments crisis. India was struggling with high fiscal deficits, rising debt, and dwindling foreign exchange reserves, which fell to alarming levels. To stabilize the economy, the government sought help from the International Monetary Fund (IMF), leading to the implementation of major economic reforms. These included liberalization, deregulation, and opening up the economy to foreign investment, shifting India towards a more market-oriented approach. This crisis ultimately paved the way for economic growth and modernization in subsequent years.