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Business
Montek Singh Ahluwalia Calls for 1991‑style Reforms to Reach 8% Growth
✍️ Business Today
🗓 29 Aug 2026, 02:40 PM
👁 5
Economist Montek Singh Ahluwalia says India must launch a sweeping reform agenda akin to the 1991 liberalisation to achieve an 8% annual growth rate.
Montek Singh Ahluwalia, a veteran economist and former deputy chairman of the Planning Commission, told Business Today that India’s growth trajectory will only reach the coveted 8% mark if the country embarks on a comprehensive reform drive reminiscent of the 1991 liberalisation.
He highlighted that the 1991 reforms, which opened up trade, deregulated industry and attracted foreign investment, transformed the Indian economy and set the stage for sustained expansion. Ahluwalia argues that a similar scale of policy overhaul is now required to address bottlenecks in infrastructure, labour markets and the financial sector.
According to Ahluwalia, current growth rates are falling short of the 8% target, and without decisive action the economy risks stagnation. He urged the government to adopt structural measures that improve ease of doing business, streamline regulations and promote competition across sectors.
The economist cautioned that the reform agenda must be politically credible and technically sound, drawing lessons from the 1991 experience while adapting to today’s global and domestic challenges.
He highlighted that the 1991 reforms, which opened up trade, deregulated industry and attracted foreign investment, transformed the Indian economy and set the stage for sustained expansion. Ahluwalia argues that a similar scale of policy overhaul is now required to address bottlenecks in infrastructure, labour markets and the financial sector.
According to Ahluwalia, current growth rates are falling short of the 8% target, and without decisive action the economy risks stagnation. He urged the government to adopt structural measures that improve ease of doing business, streamline regulations and promote competition across sectors.
The economist cautioned that the reform agenda must be politically credible and technically sound, drawing lessons from the 1991 experience while adapting to today’s global and domestic challenges.