# Economic liberalisation
**आर्थिक उदारीकरण**

- Canonical page: https://indianepics.online/event/liberalisation-1991/
- Chapter: [The Republic and its states](https://indianepics.online/chapter/republic.md)
- Track: evidence (archaeology and documents)
- When: 1991 CE
- Where: North Block, New Delhi (28.614, 77.212)
- Tags: trade, political

## Summary

Facing a balance-of-payments crisis, the Rao government devalues the rupee, scraps most industrial licensing and opens trade.

भुगतान संतुलन संकट के बीच राव सरकार ने रुपये का अवमूल्यन किया, अधिकांश औद्योगिक लाइसेंस व्यवस्था समाप्त की और व्यापार खोला।

## Account

The rupee was devalued in two steps, on 1 and 3 July 1991. On 24 July a new industrial policy ended licensing for all but a short list of industries, and that evening Manmohan Singh closed his budget speech with Victor Hugo: no power on earth can stop an idea whose time has come.

Growth was faster in the three decades that followed. How much of the change began in 1991, rather than with the reforms of the 1980s, economists still argue.

## Sources

- Union Budget speech, 24 July 1991 — https://www.indiabudget.gov.in/doc/bspeech/bs199192.pdf
- Statement on Industrial Policy, 24 July 1991 (Ministry of Industry)

## Image

Prime Minister Manmohan Singh in WEF ,2009. World Economic Forum, CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0), via Wikimedia Commons: https://commons.wikimedia.org/wiki/File%3APrime_Minister_Manmohan_Singh_in_WEF_%2C2009.jpg

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