India hasn't changed even after 25 years, we act only in crisis: Manmohan Singh

Dr. Manmohan Singh as Finance Minister in 1991. Source: PIB

Zee Media Bureau

New Delhi: The pace of economic reforms has remained sluggish in India unless called upon by an imminent crisis, believes the prime architect of Indian economic reforms and former Prime Minister Dr Manmohan Singh.

The Indian Express reported Dr Singh's conversation in the context of the economic reforms unleashed in 1991. July 1 marks 25 years of the process of economic reforms that began with devaluation of Indian rupees. Dr. Singh said that even after 25 years of the then crisis of 1990s, Indian economic reforms have continued to follow the same trajectory: act only in crisis, and when the crisis is over, it is back to status quo. 

India had fallen into serious economic crisis by the end of 1990. Triggered by the balance of payment crisis, the government was close to default as India was left with forex reserves that could barely finance three weeks' worth of imports. In this crisis, India pledged its gold reserves to IMF in exchange for a loan to meet its balance of payment crisis.

What followed next was the series of economic reforms, some of which were announced in the Budget 1991.