Why India Can’t Repeat Its 1991 Miracle
The ideas that opened up the Indian economy 30 years ago benefited from a system that was readier to receive them.
Singh was the perfect shepherd for the 1991 reforms.
Photographer: Daniel Berehulak/Getty Images
Exactly 30 years ago, a looming balance of payments crisis finally convinced India’s leaders to dismantle its socialist economy, ushering in private enterprise and years of higher growth. Those pundits and policy makers hoping that Prime Minister Narendra Modi might use the country’s Covid-induced slump to launch similarly dramatic reforms, however, are likely to be disappointed.
That’s not because Modi is afraid of bold initiatives or lacks the political capital to see them through; his popularity remains unmatched, as does his flair for the dramatic gesture. The real issue is that his government and the Indian bureaucracy, unlike in 1991, aren’t set up to develop a consensus behind liberalizing reforms.