Manmohan Singh

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In June of 1991, India was four weeks away from defaulting on its external balance of payment obligations. India had $600 million in federal reserves, barely enough to pay for three weeks of essential imports. It was during this time that the former Prime Minister of India N. Rao elected Manmohan Singh as the Finance Minister. With the coming of Manmohan Singh came many economic reforms. These reforms helped pull India from massive debt and near collapse. This leads many to the question, “How did the economic policies of Manmohan Singh help India emerge from the 1991 economic crisis?”
Right before the Prime Minister Rao took office; the former Prime Minister had sought out an emergency loan of $2.2 billion from the International Monetary
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One such example of multinational and domestic competition was when Quest started offering internet services, moving their call center to New Delhi as well. Reliance Industries Limited, based in Mumbai, also offered, internet service, among other things. Based in Mumbai, they had to be very exact on how to retain the remaining customers that had flocked to Quest. By lowering prices and establishing a strong consumer fan base, they were able to overtake Quest within India within ten years. The opening of the economy led to a more freedom, helping to raise the self-image of Indian economy.
Manmohan Singh made another choice that helped push the entire economy out of the ditch that it was trapped in. He made the choice to deregulate and privatize underperforming businesses, helping to increase GDP, as well as relieve internal government debt. Before the 1991 crisis, one could not own a business without explicit permission form the government’s financial department, or if you completed a rigorous paperwork completion course called License Raj that took months, in some cases a whole year to complete. When the crisis hit, India’s debt stood at 68.05% of the GDP. To remove this debt, Manmohan Singh removed the License Raj, replacing it with more simplistic paperwork to obtain a business license. This encouraged
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