‘Indian economy would have liberalised long before 1991, but Bofors scandal stalled it’

Works on liberalising the economy had begun when Lal Bahadur Shastri was still in office, but subsequent Principal Secretaries such as PN Dhar and PN Haskar placed the project on the back burner. Rajiv Gandhi tried to reopen the project but Bofors stalled it once again. Watch former IAS officer Sanjeev Chopra explain the long, winding road towards liberalising the economy
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[@NatiaMaisuradze-ey5iq]

The way history repeats itself in financial markets is quite intriguing. Artur Grandi's book gives a clear formula for stabilizing investments and suggests areas for investment, like cryptocurrencies.

[@pushpakjinde3136]

The congress and leftist had systematically sidelined and eliminated most of the right wing and market economy advocaters. Otherwise we would have liberalization way before the Chinese reforms. Talk about lost opportunities.

[@bharatpandit4796]

During 1989-94 I was serving in the Parliament Secretariat and observed the introduction of new economic reforms in the parliament. There was lukewarm support at best to the economic reforms in the Congress party. Reform agenda may have been there but were definitely pushed by the IMF-WB duopoly using the bailout as a leverage.

[@kallachi729]

Basically, it was NOT done before 1991. Period. If the bureaucracy has to get the credit they must also take flak and punishments for the wrongs too. Tailpiece: Let us not take away the effects of initiatives and actions taken by the minority government of NS Rao. Period

[@Subhashish69]

Adding to that, the bureaucrats were the champions in blocking reforms, they did not understand that competition results in growth, benefits the customer. Best example, when Titan wanted to start manufacturing wrist watches, they were told by the bureaucracy, we have HMT - we need to deploy capital in areas we are lacking - Titan will start over my dead body. Thankfully, Rajiv Gandhi became aware and issued the license to Titan!!

[@kallachi729]

@@Subhashish69 True

[@srinum6774]

If and buts are of no use! Congress liberalized in 1991 as a knee jerk reaction to avert a crisis! But the momentum is lost soon and all reforms were put on back burner ! I am hoping Modi goes full swing at least in his third term without worrying about electoral politics !

[@parvadhami980]

Despite partition of India, Communal violence, Famines, India in 1947 was the 6th Largest economy. By 1991 it was only 12th largest and by 2014 managed to be 10th largest.

[@anuragbanerjee2879]

data ?

[@umangdesai4136]

​@anuragbanerjee2879 that data is available for everyone to see bro! Seriously, just dig around on the Web!

[@tushar4evr776]

Bofors scandal is also the gift of the then Govt. So, can't blame anyone else.

[@samantrae]

Wow, wonderful. NN Vohra really made a report on that ! and so great that you accept it is much less now !!!! But, sir what about those blessed souls who face it still *(it is less na. not gone)

[@ankur.mahajan]

Unlisted video slated for Monday ?

[@Verstoppen69]

People forget maunmohan had been advising socialist Indira too

[@umangdesai4136]

The indian economy was weak, and all the political struggles of 90s stem directly from the country's inability to grow economically. The main culprit, you ask, was successive governments of Congress with their ideology rooted in Marxist view of the world. 1991 reforms cannot be celebrated as brainchild of any of our leaders.. not Congress, not BJP (BJP was running Swadeshi Apnaao campaigns then). However, BJP was politically motivated in opposing these reforms, knowing fully well how they can get to work, wherein Congress is still idologically bent towards protectionism - given most of its leaders come from bureaucracy and have benefitted by the heavy hands of government on businesses.

[@thecustompropper1279]

@Print, please invest in good microphones like shure or something else, you're a youtube based organisation, good video and audio quality are paramount to your success, also please train your speakers in how to deliver a talk, a flat intonation can make even the most interesting topic sound boring. There needs to be vigour and enthusiasm in the speech to make the viewers interested and keep coming back for more

[@user-jn7ph2wc2w]

completely wrong article. Rajiv Gandhi became PM with a huge mandate in 1984 and liberalization happened in 1991. That's a gap of just 6 years considering 1984 election happened towards end of year. Secondly, it's impossible for a Nehru-Gandhi family to turn to "right" and give up on Socialism, left of center policies and go for Reform. In fact, this is exactly what happened during UPA years from 2004 till 2014, reforms were totally stalled. Finally, Bofors broke out in 1987, well 2 years into Rajiv's term. It's totally wrong to suggest what Rajiv did NOT do in first two years, would have happened later. Just standard lutyen media and its favorite people spreading some propaganda.

[@sandeepnerurkar4918]

Partial liberalisation had started from 1985. MRTP was increased to 100 crores. FERA was diluted. Inheritance tax was abolished Income tax rates came down.

[@whaddoiknow6519]

Besides factlets and factoids we also have factotums whose job it is to produce factlets and factoids.

[@ayooamit]

Never choose congress for prosperity.

[@ramachandrankannan274]

Talking of reforms during Rajiv Gandhi’s time is misleading. The first phase of delicensing took place in 1980 when Venkatraman was the Finance Minister and Indira Gandhi the PM. The subsequent appointment of Pranab Mukherjee as FM ( arguably India’s worst ever FM) saw a backtrack.Rajiv Gandhi’s initial period saw some more delicensing but the defeat in Haryana Assembly ( much before Bofors) saw an end to liberalism. While Dr Singh gets a lot of credit, his role was more about budget balancing, tightening expenditure and back tracking on liberalism. The first true act of liberalism was in Chidambaram’s budget of 97. Despite many subsequent back tracking measures by Yashwant Sinha and Pranab Mukherjee, Indian economy has done well. India needs a much bigger set of economic reforms ( particularly the Agriculture sector needs India to get rid of its antediluvian practices, the manufacturing sector needs needs growth stimulus, labour law reforms are overdue etc) but none of today’s political players appear ready to move forward

[@kiran4652]

Only if Swantra party could gain traction

[@thomasjosejosephjose7036]

Congress failed to cinceptualise bond. If received the money through bond there were no problem

[@anandsalvi4345]

Ask him about Electoral Bonds?

[@higdcvh]

Rafale?