1991 Currency Crisis and Structural Adjustment in Indian Economy: A Study

Prof. Padmabati Gahan; Sisir Ranjan Dash

Volume : V, Issue : XII, December - 2016

1991 Currency Crisis and Structural Adjustment in Indian Economy: A Study

Prof. Padmabati Gahan, Sisir Ranjan Dash

Abstract :

In the early 1980s it was a situation of mass poverty, unemployment, low agricultural and industrial output and very bad situation in international trade. This was a time for adopting a microscopic view rather than a telescopic view on Indian economy. So, for the first time India knocked the doors of IMF and the funds in the form of SDRs entered the country with conditions attached. But, the comprehensive adjustments of 1980s could not that successfully implemented and a gradual deterioration in macroeconomic environment led to a severe currency crisis in 1991. The present study has been conducted with the objective to identify and explain the factors responsible for 1991 currency crisis in India and to explore the inherent needs to implement structural adjustments in Indian economy. The findings of the study have been derived through a review of extant literature.