The balance of payments crisis that India faced in 1991 occurred mainly due to:
Large fiscal and current account deficits
The balance of payments crisis that India faced in 1991 occurred mainly due to large fiscal and current account deficits, which depleted foreign exchange reserves.
Excess industrial production, rapid service export growth and a remittance surge do not correctly describe the actual cause of the 1991 crisis.
Hence, 'Large fiscal and current account deficits' is the correct answer.
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