On this day 25 years ago, Devaluation of the rupee set in motion, and opened the Indian economy, paving a path to make the Rupee one of the most stable currencies. On July 1, 1991, The Downward revision in the rupee’s external value against major foreign currencies was announced by the RBI .
In an interview with The Indian Express, Manmohan Singh and P V Narasimha Rao who worked at that time as finance and prime ministers said ” fear of “blood and tears,”and the crying need to revisit old orthodoxies. the ideas weren’t truly original, since they were discussed within and without. All I did was put them all together in a coherent whole, when I got an opportunity. The Budget for 1991 set out the roadmap that we wanted to adopt for the next two to three years. Security and Exchange board of India (SEBI) got a legal status from being just an advisory body. Singh set up the Narsimham committee on financial sector reforms, follwed by tax reforms.”
He also spoke about Chidambaram “”Chidambaram and I went to meet Prime Minister Narasimha Rao and the Prime Minister turned to me and said, ‘What do you think?’ and I said, ‘I entirely endorse it’. That was the end of it, and the Prime Minister put his signature on it,” he told The Indian Express.