long answer

what was the basic problem that forced us to take U-turn in our polices in 1991?

The factors that forced India to take a u-turn in the policies and introduce the reforms in 1991 have been explained in the NCERT solutions. You can refer to the same following the below mentioned path.

Indian Economic Development- Chapter 3- Page 53- Ques 1

  • 4

1 Inflationary pressure

2 Poor performance of Public Sector Undertakings(PSU)

3 Mounting Fiscal deficit

4 Adverse balance of payments

5 Fall in foreign exchange reserves

6 Gulf crisis

  • 2
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