was close to 8.5 per cent of the gross domestic product, the balance of payments deficit was huge and the current account deficit was close to 3.5 per cent of India's GDP. India's foreign reserves barely amounted to US$1billion, enough to pay for 2 weeks of imports, in comparison to US$600 billion in 2009.

Singh explained to the PM and the party that India is facing an unprecedented crisis. However the rank and file of the party resisted deregulation.