India – Politics of Economic Reforms: Real Lessons from 1991 (Friedrich Naumann Foundation)

Barun Mitra writes: July 2021 marks the 30th anniversary of the economic liberalization in India. The liberalization began in 1991, with Dr. Manmohan Singh as the then-Finance Minister in the Congress-led coalition government headed by Mr. P.V. Narasimha Rao. Facing a severe balance of payment crisis and battling a situation where the country’s foreign exchange reserves had fallen to less than one billion dollars; an amount that was barely enough to last for 3 weeks of imports of essential goods. The then government decided to liberalize international trade, lower tariffs on imports, devalue the rupee and significantly dismantle the license and quota system that had hobbled most Indian industries. 

go to Friedrich Naumann Foundation: Economy: Politics of Economic Reforms: Real Lessons from 1991 (