Who was the finance minister during the new economic reforms 1991?
- ((a))
Arun Jaitley
- ((b))
Man Mohan Singh
- ((c))
P. Chidambaram
- ((d))
Indira Gandhi
Show Answer
Man Mohan Singh
The correct answer is Manmohan Singh.

Key Points
- Manmohan Singh was the Finance Minister of India during the implementation of the New Economic Reforms in 1991.
- He played a pivotal role in introducing Liberalization, Privatization, and Globalization (LPG), which marked a significant shift in India’s economic policy.
- Under his leadership, the government dismantled the License Raj, reducing bureaucratic control over businesses and industries.
- These reforms were introduced under the Narasimha Rao government, with Singh serving as the Finance Minister.
- The reforms aimed to address the Balance of Payments (BoP) crisis that India faced in 1991, stabilizing the economy and opening it up to foreign investment.

Additional Information
- Balance of Payments Crisis (1991):
- In 1991, India faced a severe economic crisis due to dwindling foreign exchange reserves, high fiscal deficits, and political instability.
- The crisis necessitated immediate reforms to stabilize the economy and attract foreign investment.
- Key Features of 1991 Economic Reforms:
- Liberalization: Removal of industrial licensing, reduction in import tariffs, and deregulation of industries.
- Privatization: Increased participation of private entities in industries, and disinvestment in public sector enterprises.
- Globalization: Opening up the economy to foreign investments and promoting international trade.
- Manmohan Singh's Contribution:
- As Finance Minister, he introduced the 1991 Union Budget, which laid the foundation for these reforms.
- His policies were guided by economic pragmatism, aiming to integrate India into the global economy.
- Impact of Economic Reforms:
- India’s GDP growth improved significantly, transitioning from a closed economy to one of the fastest-growing economies globally.
- The reforms attracted foreign direct investment (FDI) and improved infrastructure development.

Important Points
- Narasimha Rao Government:
- P.V. Narasimha Rao served as the Prime Minister of India from 1991 to 1996.
- His leadership was instrumental in implementing the 1991 economic reforms alongside Manmohan Singh.
- Manmohan Singh's Legacy:
- Manmohan Singh later served as the Prime Minister of India from 2004 to 2014.
- He is regarded as one of India’s most influential economists, credited for transforming India’s economic landscape.