REFORMIST POLICY PACKAGE OF JULY 1991 | Unit 5 | Part 2 | Mco 04

By July 1991 there was a crisis situation following the Gulf crisis of 1990 when the oil import bill shot LIP. Inspite of financial assistance fiom the IMF and bosrowirigs against pledging of gold abroad, there was fi~~.tIier drop in foreign exchange reserves, and default on servicing external debt was irn~nirlent. Hence, drastic reformist policy measures were initiated by tlie Government. of India introducing a 'Stabilisation and Structural Acljustmcnt Programme'.