India’s industrial reforms of 1991: The inside story
A providential promotion of a bureaucrat and a strategic ministerial portfolio allocation set the stage for the New Industrial Policy unveiled in 1991
The 1991 economic crisis, essentially a balance of payments problem, is generally seen as the overriding factor that led to the dismantling of the licence/quota raj, but that is only partly true. The lacunae of the industrial and trade policies were well documented both within and outside the government. Contrary to the perception of reforms being foisted on the government by the International Monetary Fund (IMF), these reforms were entirely “made in India".