1. In 1991, India faced an exceptionally severe balance of payments crisis that pushed the country to near bankruptcy. India's central bank had refused new credit and foreign exchange reserves had reduced to the point that India could barely finance three weeks of imports. 2. In response to the crisis, the Indian government signaled a systemic shift to a more open economy with market-oriented reforms. Reforms included liberalizing trade and investment, reducing import restrictions and licensing, selling state-owned businesses to private investors, and allowing more foreign participation in the economy. 3. The reforms helped shift India away from a state-run economy and toward market-based policies that emphasized private sector growth, international trade, and greater reliance on