Twenty-five years later, today as we mark 25 years of the opening of Indian economy and the devaluation of the India rupee, the current economy is now way bigger. But it is still difficult to carry out reforms even though there is greater acceptance to opening up.
Manmohan says,”I think in a crisis, we act constructively. When it is over, status quo takes over.”
India is today a $ 2 trillion-plus economy – over 6.3 times its 1991 size of $ 326 billion. It is less agrarian, and more globalised.
He considers it fortunate and incredible that the next government of United Front which was to come to power also carried out the process which was put in place by a Congress-led government.
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The United front was led by H D Deve Gowda and I K Gujral. “In fact, Chidambaram presented what came to be known as a ‘dream budget’.” he said.
Later the BJP government which also continued the reform process.
Reflecting upon how much of a change those reforms have affected the Indian industry 25 years on, he believes that it is much more confident.
“They are the children of the 1991 reforms. We removed wealth tax in the 1991 budget. That is one way in which the children of those who had wealth could put money honestly into their enterprises. Now they all feel that we did a good thing.”