Yes that was because the economy was in ruins due to the socialist policies followed by Nehru for the past 40+ years, moreover even world economy took a bump as USSR disintegrated and all socialist nations were feeling the heat.
That was when Dr.Subramaniyam swamy negotiated the deal with Nato warplanes to refuel in India during gulf war we got 1 billion $ in return and that was the phase India opened its market to investors and introduced market reforms and now you see where we are?
How is the economy related to Ram Mandir? or are you implying Babri Moqsue demolition brought down the economy?