Economic reform 1991 Once a famous French poet Victor Hugo said, “ There is no power on earth that can stop an idea whose time has come”. There was a time in India when only brands were present. Ambassador and Fiat are the only vehicles that could be seen on the roads, only Doordarshan was telecast on the television.
Then India was supposed to be a very poor economy. There were only government companies and government jobs. Doing business was difficult at that time due to Permit Raj or Licence Raj which was the heritage of Britishers which was continued by the different governments till 1991. Licence Raj has given all the authority of industry to the Govt. Under which production to employability was decided by the government.
During 1990, the Economy of the country was in its worst condition. Imports were on their high, few funds remain in the reserve for the procurement of crude oil. The condition was to worst that the finance ministry had decided to take a loan on a mortgage of gold from International Banks. Then-Prime Minister Chandrashekhar and RBI governor S. Venkitaramanan decides to take a loan from Bank of Switzerland, Bank of London and the Bank of Japan. But the loan was sufficient to make the economy stable.
After the breakaway of the Chandrashekhar government in June 1991, PV Narasimha Rao becomes the 9th Prime Minister of India. In his cabinet, Dr. Manmohan Singh was the finance minister and to improve the economy of the country one minister in his cabinet from the opposition party was Dr. Subramanian Swami.
In 1991, Finance Minister Dr. Manmohan Singh announced his first budget within a couple of months. That Budget opens the door Global market for India. That reforms the economy to a greater extent. This reform has three pillars. Liberalization, Privatisation, and Globalisation. This helps India to gain a reputation at global business forums and monetary forums. After that Indian can take loans easily from the International Monetary Fund( IMF ).
The Privatisation welcomes tremendous Multinational companies to India mainly in the sector of Information Technology, Automobile, and Service sectors. This brings the boom in jobs for the Indians. Established Indian companies and PSU gained tremendously mainly those Indian companies who are in the manufacturing sector. Exports increased and the global market was open for Indian companies and traders.
The country witnessed 28 years of Economic Reform. The growth and progress of our country we are watching nowadays are somewhere due to the Economic Reform 1991. The main purpose of the policies that the government makes is to make an impact on every citizen of the country in the form of education, living standards, etc.