Previous Year Question
Who was the Prime Minister of India during the economic reforms of 1991?
Correct Answer: A
Detailed Solution
P. V. Narasimha Rao was the Prime Minister of India during the economic reforms of 1991. According to the official records o the Prime Minister's Office, P. V. Narasimha Rao served as Prime Minister from 21 June 1991 to 16 May 1996. The major economic reforms initiated in July 1991 were introduced during his government.
At that time, Dr. Manmohan Singh was the Finance Minister, so it is important to distinguish between the Prime Minister and the Finance Minister. The Government of India's official Budget Speech for 1991-92 identifies “Shri Manmohan Singh” as the Minister of Finance and records that he presented the Budget on 24 July 1991. The speech discussed the foreign-exchange crisis, severe Balance of Payments difficulties, fiscal imbalances and the need for economic restructuring.
Remember the pair: Prime Minister — P. V. Narasimha Rao; Finance Minister — Dr. Manmohan Singh. The reforms associated with liberalisation, privatisation and globalisation were introduced in this political and economic setting.