Indian Economy's Great Leap from 1991-92 ---- Can the PM, Who is FM do it Again

The Prime Minister has once again taken charge of the Finance Ministry, till a new FM is appointed, sometime in late August September, 2012. It was, when he was the FM in 1991-92, that the Indian economy was liberalised and since then has seen a number of reforms, which have been beneficial to our country's overall economic growth.  

Today, when the PM will also act as the FM, he can once again infuse energy into the economy, by introducing much awaited reforms and show the same zeal he showed, when he got the nuclear bill passed in the Parliament. No longer Mamata is important. The other M's Mulayam and Mayawati can be relied for support.

It would be interesting to note, the economic development of the Indian economy, since 1991-92 till 2011-12.

The GDP growth rate was 1.4% in 91-92 and today is 6.5% and had touched a high of around 8.5%+ during 2010-11.

The inflation rate during 91-92 was 13.6% and fell to 4.5 % during 95-96 and today is hovering around 7.7%.

The country's foreign exchange reserves were a low of $5.8 bn in 91-92 and today are a high of $ 295 bn though nowhere near China's reserves of $ 3000 bn plus.

The country imported $24 bn worth of goods during 91-92 as against $488 bn during 2011-12.

Similarly the exports have gone up from $18 bn in 91-92 to $300 bn during 2011-12.

However the rupee has fallen to nearly 58 today from a high of 21 in 91-92 to the dollar.

The fiscal deficit as a % of GDP has remained static at 5% for both the years under review.

The total tax collection has risen from Rs 0.88 lakh crores in 91-92 to Rs 9 lakh crores in 2011-12.

However the Centre's spending has gone up to Rs 13.2 lakh crore in 2011-12 from Rs 1.1 lakh crores in 91-92.

The Sensex has gone up from 1,275 in July 1, 91-92 to 16,900 on June 26, 2011-12.

Dr Manmohan Singh has an oppurtinity, to once again revitalise the Indain economy and lead it on the path to better prosperity, as he did in 91-92. Will he rise to the occassion or will he also contribute to the balloning subsidy bubble and cripple the economy's ability to grow. 

A golden chance for the PM when he is his own FM.