the Emergency to right-of-centre

The left-of-centre policies of the early 1970s gave way during the Emergency to right-of-centre policies. This trend accelerated with the Janata government and became consolidated with the new economic policies (NEP) implemented in 1991. When Indira Gandhi returned to power in 1980, India faced a balance of payments (BOP) crisis. It had to seek the IMF’s help and agree to its conditionalities, like the liberalisation of imports, the relaxation of controls and the promotion of consumerism. This caused foreign debt to rise from $10 billion in 1980 to $93 billion by 1989. Initially it was financed by long-term borrowing, but from 1985 it was replaced by short-term borrowing, which dried up in 1988-89 with the oil crisis hitting the world. A BOP crisis ensued and the rupee weakened, leading to the increased flight of capital. Foreign exchange reserves declined all through 1989-90 in spite of loans from the IMF. สล็อต เว็บตรง