Center heaps praise on former Prime Minister Manmohan Singh in Supreme Court

New Delhi:

The BJP-led central government praised former Prime Minister PV Narasimha Rao and then Finance Minister Manmohan Singh for their role in initiating economic liberalization and opening up the Indian economy in 1991 key role. During a Supreme Court hearing, the government said the move effectively marked the end of the “permit rule” era, The Times of India reported.

Solicitor General Tushar Mehta told a nine-judge bench headed by Chief Justice DY Chandrachud that the economic reforms proposed by Mr Rao and Mr Singh had liberalized many laws, including the Companies Act and the Trade Practices Act MRTP. However, he stressed that successive governments over the next three decades did not see the need to amend the Industries (Development and Regulation) Act, 1951.

The response came after the judge criticized the 1951 IDRA, saying it was outdated and reflected the restrictive policies of the “license rule” era.

Mr. Mehta stressed that despite the winds of change brought about by economic reforms, IDRA remained unaffected, allowing the Center to maintain significant control over various industries.

In 1991, faced with a foreign exchange reserve crisis, the government led by Narasimha Rao launched three transformative economic reforms: globalization, liberalization and privatization.

Mr. Mehta also clarified that the Center’s withdrawal from controlling the industry does not indicate lack of regulatory powers. He stressed that the Center reserves the power to regulate industries in the interest of the country, especially during emergencies like the Covid-19 pandemic. Mr. Mehta elaborated that if the federal government does not have the power to regulate industrial alcohol, especially the production of hand sanitisers during the pandemic, a robust response to the crisis will be compromised.