Explain Economic Environment in India and also explain the points of crisis of June 1991 which led to enforcement of these reforms.

Dear student, 

The following points explain the economic environment of India at the time of Independence:

• Agriculture was a dominant activity
• Nearly 70% of the population was engaged in agriculture
• More than 85% of the population lived in villages
• Obsolete and backward technology was used
• Lack of good public healthcare facilities
• Widespread communicable diseases

The following points describe the economic crisis of 1990:

• High fiscal deficit
• Increasing internal debt
• Low production in agriculture and industrial sector
• High rate of inflation
• Fall in the value of rupee against dollars
• Failure to meet international financial obligations
• Fall in the country's credit worthiness
• Low GNP growth rate