In the 1990s, India faced a balance of payment

In the 1990s, India faced a balance of payment crisis characterized by the depreciation of the Indian rupee declining productivity in domestic industries and the depletion of buffer assets. However, India recognized the opportune moment and made the crucial decision to implement LPG reforms in 1991, despite apprehension from some proponents of the socialistic system. This shift towards a market based economy proved to be transformative fostering growth and competitiveness in the Indian domestic sectors.