Q.What immediate economic crisis triggered India's New Economic Policy of 1991?

The NEP was triggered by a severe shortage of foreign exchange reserves in 1991.

By 1991, India faced a serious balance-of-payments crisis — its foreign exchange reserves had fallen to a level barely sufficient to cover a few weeks of essential imports. This crisis was the immediate trigger for the Government of India to announce the sweeping package of reforms known as the New Economic Policy, built on Liberalisation, Privatisation, and …