Question

Which event did not directly contribute to India’s economic crisis of 1991?

Options

• Rising oil prices due to the Gulf war

• Decline in Soviet bloc trade

• Major reduction in import tariffs

• Political instability in the country

Answer 1

Major reduction in import tariffs

Explanation:

The crisis happened before NEP reforms. Reduction in import tariffs was part of the NEP solutions, not a cause of the crisis.