The BJP-led central government commended former prime minister PV Narasimha Rao and his then finance minister, Manmohan Singh, for their pivotal roles in initiating economic liberalisation and opening up the Indian economy in 1991. During a hearing in the Supreme Court, the government said that the move effectively marked the end of the era of ‘licence raj’.
Solicitor General Tushar Mehta informed a nine-judge bench led by Chief Justice DY Chandrachud that the economic reforms introduced by Rao and Singh had liberalised numerous laws, including the company law and the Trade Practices Act MRTP. However, he highlighted that subsequent governments over the following three decades did not see the need to amend the Industry (Development and Regulation) Act, 1951.
The response came after the bench criticised of the IDRA, 1951, describing it as archaic and indicative of the restrictive policies of the ‘licence raj’ era.
Mehta emphasised that despite the winds of change brought by economic reforms, the IDRA remained untouched, allowing the Centre to maintain significant control over various industries.
