India may not be stumbling into a full-blown economic crisis this year, but there is little doubt that the gradual withdrawal of global liquidity has brought several cracks to public attention. What was done in 1991—liquidity, adjustment and reforms—is still relevant in the current situation, when India faces its toughest economic test in two decades.

The context may be different but the underlying lessons still have value. The men in New Delhi should not need any convincing, since some of them played stellar roles in 1991 as well—Manmohan Singh, P. Chidambaram, Montek Singh Ahluwalia and C. Rangarajan. Read More