How Manmohan Singh pulled India from brink of economic death | From the archives

In 1991, India's economy was in a mess and on the verge of collapse. Jakhar's support to the new economic package is critical because the government will have to slash fertiliser subsidies—a move he is ready to back, though he would like the cut to be compensated through "remunerative prices to farmers". A senior World Bank executive in Washington D.C. says international lending institutions are "impressed" with New Delhi's resolve to "maintain its impeccable credit record" as well as its willingness to "correct economic imbalances"—for instance, devalue the rupee and cut subsidies. Rao, director-general, National Council of Applied Economic Research: "The present budgetary crisis has brought about a situation where the Government has no choice but to sell public sector equity." "Japanese businessmen want 100 per cent holding because they believe their desired level of quality control can't be exercised by an Indian company," says Michihiro Shinohara, general manager of Sanwa Bank in India.