generally referred to as liberalization but actually they reflected changes in three overlapping areas namely Liberalization, Privatization and Globalization (LPG). As the first step, rupee was devalued by 25%. Many restrictions on import and export were removed. Several industries were exempted from government regulations so as to reduce the stifling hold of license-permit-quota-inspector raj. The subsidies given by the government on various commodities like diesel, fertilizers and power, to keep their prices artificially low, were cut down. The attitude to look at the private sector changed; rather than thinking of it as an enemy, it was acknowledged that they could be partners in development. In short, the changes were geared to free economy from the shackles of government. It was obviously not going to be an easy task. Liberalization as an idea was never even remotely acceptable to any political party in India. Government control of the economy, under the garb of socialism, was suitable for all politicians and bureaucrats. Even the industrialists were happy with it because they had learnt to wriggle their way through the jungle of regulations. Government policy kept competition from developed world at bay and Indian companies could make exorbitant profits by producing shoddy goods and selling them at a much higher price in the seller’s market that prevailed in the country. They did not see any need to upgrade technologically. Even the media and opinion-makers did not want that basic system to change. However, what began in July 1991 was the beginning of the journey, albeit with just a few tentative steps, in the direction that Joshi all along had passionately advocated. Joshi believed that the Prime Minister and Finance Minister had deflected the country’s focus from politics to economics. They might have done it out of compulsion but it was still a very healthy shift. Government’s economic reforms programme had Search for New Ways
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