Picture India in 1991. You need to make several trips to Delhi and wait three years to import a computer. Coca-Cola is contraband; there is a 22-month waiting list for a car, and an interminable queue for admission to the exclusive club of telephone owners: there are only five million active connections in a country of 900 million people.
Post-colonial India elevated suspicion of private business into a public virtue. But with the collapse of the Soviet Union, which maintained a vital $6 billion trade relationship with India, the rhetoric of economic self-reliance and political non-alignment became insupportable. All that stood between India and bankruptcy when the government was compelled to throw open the economy in the summer of 1991 was $2 billion.
India vaulted from an era of austerity to an age of excess. The already rich became the principal beneficiaries of this transformation, going on to own nearly half of the national wealth.
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