1991 Economic Reforms Gave Indian Exporters 30% Tradable Import Licenses
Montek Singh Ahluwalia · MONTEK SINGH AHLUWALIA PODCAST: Top Economist Explains India’s High Growth Years On The Neon Show · Nov 9, 2024 · at 44:07
Former Indian Commerce Secretary Montek Singh Ahluwalia describes the dismantling of India's License Raj trade restrictions in 1991.
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“So what we did was said, no, what we'll do is instead of this system of export licensing, where we used to calculate what are the imports that an exporter really needs, and then give him an import license for those imports, which only he can use. Okay. We said, look, let's just give them, give all exporters, 30% effective import permission. That means even if you're exporting Basmati rice, you would get a fungible tradable import license for 30% of the value, which you could sell.”
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