Who among the following Prime Ministers initiated the structural adjustment programme, which radically changed the direction that Indian economy pursued since independence?

Rajiv Gandhi

The correct answer is Option (1) → Rajiv Gandhi

 The structural adjustment programme or the new economic reforms was started by Rajiv Gandhi.

" Rajiv Gandhi became the Prime Minister after the assassination of Indira Gandhi. He led the Congress to a massive victory in the Lok Sabha elections held immediately thereafter in 1984. As the decade of the eighties came to a close, the country witnessed five developments that were to make a long-lasting impact on our politics.

First the most crucial development of this period was the defeat of the Congress party in the elections held in 1989. The party that had won as many as 415 seats in the Lok Sabha in 1984 was reduced to only 197 in this election. The Congress improved its performance and came back to power soon after the mid-term elections held in 1991. But the elections of 1989 marked the end of what political scientists have called the ‘Congress system’. To be sure, the Congress remained an important party and ruled the country more than any other party even in this period since 1989. But it lost the kind of centrality it earlier enjoyed in the party system.

Second development was the rise of the ‘Mandal issue’ in national politics. This followed the decision by the new National Front government in 1990, to implement the recommendation of the Mandal Commission that jobs in central government should be reserved for the Other Backward Classes. This led to violent ‘anti Mandal’ protests in different parts of the country. This dispute between the supporters and opponents of OBC reservations was known as the ‘Mandal issue’ and was to play an important role in shaping politics since 1989.

Third, the economic policy followed by the various governments took a radically different turn. This is known as the initiation of the structural adjustment programme or the new economic reforms. Started by Rajiv Gandhi, these changes first became very visible in 1991 and radically changed the direction that the Indian economy had pursued since Independence. These policies have been widely criticised by various movements and organisations. But the various governments that came to power in this period have continued to follow these....."