Why India’s present economic crisis is different from the recession of 1979
In the summer of 1979, the Indian cricket team returned after a dismal performance at the cricket World Cup in England. The team lost all its three matches and returned home to a country in political turmoil and battling a collapsing economy and trade unions strikes. An acute fuel shortage, caused by the oil crisis as global oil production dropped in the wake of the Iranian Revolution, was compounded by a serious balance of payments crisis as India struggled to pay for the sudden increase in its fuel import bill. A crop failure caused by two successive droughts only added to the agony of a country, 31.7 per cent of which depended on agriculture.