Why were reforms introduced in India?

Since independence, India followed the Mixed economy framework by combining the advantages of the market economic system with those of the planned economic system. However, over the years, this policy resulted in the establishment of a variety of rules and laws which were aimed at controlling and regulating the economy which instead ended up hampering the process of growth and development. In 1991, India met with an economic crisis relating to its external debt. i.e. the government was not able to make repayments on its borrowings from abroad. Foreign exchange reserves dropped to levels that were not sufficient for even a fortnight. The prices of essential goods touched a new height All this led the government to introduce reforms in India.