In 1991, India faced a severe economic crisis. Foreign reserves could barely cover three weeks of imports. The country was on the verge of default, and inflation was skyrocketing.
Prime Minister Narasimha Rao chose Dr. Manmohan Singh, an economist and former Reserve Bank Governor, as the Finance Minister. Singh was tasked with saving India from financial disaster.
Manmohan Singh introduced sweeping reforms to reduce bureaucratic control, ending decades of the License Raj. This allowed businesses to operate with fewer restrictions and unleashed entrepreneurial energy.
To attract foreign investment, Singh opened up India’s markets. Tariffs were reduced, trade barriers lowered, and foreign direct investment policies were liberalized.
Singh devalued the rupee to make exports competitive, curbed subsidies, and introduced tax reforms. These measures stabilized the economy and restored investor confidence.
India's GDP growth surged, foreign reserves soared, and industries flourished. Singh’s reforms paved the way for India to emerge as a global economic power in the decades to come.
Manmohan Singh’s 1991 reforms transformed India’s economy, laying the foundation for modernization and growth. His vision continues to inspire economic policies today.