1991: Indian Bop Crisis (IIPM-News Release)

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At times, a kick is required to kick start something good. And the 1991 Balance of Payment crisis was the same; a kick which had a sea change effect on Indian economic policies. A decade of widening current account deficit, galloping budget deficit, rising foreign debts and sky rocketing inflation finally made the rupee slip extremely fast against major foreign currencies. When RBI started selling off foreign currency Reserves to save the rupee, India was left out with little forex reserves, which were insufficient to meet even a month’s imports need of the country. But that was a blessing in disguise, for liberalisation kept its foot in India and the country, since then, has showed a fast-track growth.

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Source IIPM-Editorial,2006