The reforms, put in place by the then-finance minister Manmohan Singh in July 1991, had not only helped the country come out of the economic slump faced by the country 25 years ago, but it had also set a new and global framework for the future generation of policymakers.
July is a month to remember and 2016 is an year to celebrate the silver jubilee of economic reforms spearheaded by the then-finance minister, Manmohan Singh, considered the architect of reforms in India from July 1991 when PV Narasimha Rao was the Prime Minister. This was the time when India development model evoked sarcasm across the globe.
This was the year that proved the dictum that ‘coming events cast their shadows before’, wrong. The year 1991 had begun on an ominous note as the year saw political instability in India with Mandal Commission’s report on reservations leading to a crisis situation never witnessed before. Former Prime Minister, Rajiv Gandhi had been assassinated on May 21 and there was a wave of anguish and unrest.
It was under such trying circumstances when Manmohan Singh as the Finance Minister presented his budget on July 24. It was not only the political instability that had shaken the nation but there was a serious foreign exchange reserve crisis as well threatening the fundamentals of Indian economy. The foreign exchange reserves were so low that they could suffice for a maximum of 30 days only. It was this moment when Manmohan Singh delivered his historic speech that changed the destiny of Indian nation and its economic direction. “There is no time to lose,” Singh urged, before going on to announce “essential reforms in economic policy…” Licensing, the bane of businesses, was tamed by the abolition of permits for all but a handful of industries; import-export policy radically altered; and direct foreign investment was freed up.
An idea whose time had come
In his maiden speech as the union finance minister, Singh quoted one of the greatest French writers, Victor Hugo: “No power on earth can stop an idea whose time has come.” And rightly said this was an idea that changed the Indian nation for better.
This story is from the July 31 2016 edition of Tehelka.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 31 2016 edition of Tehelka.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Why Did Ratan Tata Feel Compelled To Take Charge Again?
Did Cyrus Mistry fall victim to an ossified corporate culture or did he violate Tata Sons’ ethos and culture? MG BanGa tells the story so far.
Misguided Youths Or Trained Terrorists?
As part of a dangerous trend emerging across the world, homegrown ISIL sympathisers are willing and attempting to carry out deadly terror attacks without any comprehensive support system.
Indian Railways: Living In Dreams
Indian Railways is changing track, giving up its separate Budget and experimenting with surge pricing on three popular trains. That leaves the behemoth with no funds to replace ageing assets and encourage further investments.
Priyanka Gandhi Agreed To Play Bigger Role In UP
Further delay in decision making could be detrimental to the party’s goal to rejuvenate its prospects in the State Assembly elections.
Mission 2019: Banega Swachh India?
Two years ago, Modi kicked off a cleanliness drive in a spectacular way. Showing the contrast between world cities and Gurgaon, MG BANGA suggests ways in which the mission can be accomplished by 2019.
The Goodwill Enjoyed By Mehabooba Mufti Has Been Erased!
Mehbooba Mufti risks losing her popularity and irking her party ranks by using New Delhi’s rulebook to deal with the unrest in Kashmir.
Is China's Support To Pakistan, Big Threat To India?
New Delhi needs to be cautious as in Pakistan’s scheme of things, strategic ties with China can serve as a powerful weapon to deal with adversaries like India.
UP's Finances Make Yogi Walk A Tight Rope
The government machinery is trying to deliver its best due to meagre financial resources.
Wooing With Farm Waivers
Taking a cue from Uttar Pradesh, more state governments including Maharashtra and Punjab could waive offloans to farmers to woo rural voters in the run-up to the 2019 general election.
Punjab CM's Unwelcoming Sajjan Wasn't A Kind Gesture
Amarinder shoots himself in the foot by refusing to meet Canadian Defence Minister Harjit Singh Sajjan, who met Haryana CM and promised to increase bilateral businesses and also talked to SGPC president Kirpal Singh Badungar.
