The Indian Financial Crisis of 1991 was a significant economic event that led to a balance of payments crisis in India. The country faced a severe shortage of foreign exchange reserves, which made it difficult to pay for essential imports. This situation was exacerbated by high inflation, fiscal deficits, and a lack of foreign investment, prompting the government to seek assistance from the International Monetary Fund (IMF). In response to the crisis, the Indian government implemented major economic reforms, including liberalization, privatization, and deregulation. These changes aimed to open up the economy, attract foreign investment, and promote growth. The reforms marked a turning point in India's economic policy, leading to increased globalization and a more market-oriented economy.