How markets and economy fared under different governments in past 23 years

In India, politics and economics go hand in hand, each affecting the other. Here's how the markets and the economy have fared under different governments in the past 23 years:

Indira Gandhi

PM from 14 Jan 1980 - 31 Oct 1984

Average annual GDP growth: 3.7 per cent

Average inflation: 10.6 per cent

Annualised Sensex rise: 17.61 per cent

Major economic decisions

SEVEN more private-sector banks nationalised in 1980.

PARTIAL removal of cement price and distribution controls in 1982.

MARUTI introduced India’s first people’s car in 1983 with FDI from Suzuki of Japan




Rajiv Gandhi

PM from 30 Oct 1984 - 1 Dec 1989

Average annual GDP growth: 5.4 per cent

Average inflation: 6.6 per cent

Annualised Sensex rise: 21.2 per cent

Major economic decisions

25 industries de-licensed in 1985.

INTRODUCED modified VAT (diluted version of VAT) in 1986.

INTRODUCED minimum alternative tax (MAT) in 1987.

OTHER than UTI, several public-sector mutual funds also allowed in 1987.

100 per cent of export income made tax-free in 1988.

TOTAL decontrol of cement and aluminium sectors in 1989.



V P Singh
PM from 1 Dec 1989 - 9 Nov 1990

Average annual GDP growth: 5.7 per cent

Average inflation: 8.9 per cent

Annualised Sensex rise: 104 per cent





Chandra Shekhar

PM from 9 Nov 1990 - 21 Jun 1991

Average annual GDP growth: 3.36 per cent

Average inflation: 12 per cent

Annualised Sensex rise: -3.58 per cent

Major economic decision

PLEDGED gold with IMF for an emergency loan.




P V Narasimha Rao

PM from 21 Jun 1991 - 16 May 1996

Average annual GDP growth: 5.7 per cent

Average inflation: 9.6 per cent

Annualised Sensex rise: 23.4 per cent

Major economic decisions

STEEL industry de-licensed in 1991 and prices decontrolled in 1992.

NATIONAL Telecom Policy of 1994 set the base for development of the sector.

ABOLITION of controller of capital issues (CCI) resulted in a flood of IPOs.

FIIs allowed in the Indian stock market in 1992.

SEBI ACT passed after Harshad Mehta scam in 1992.

INTRODUCTION of the NSE in 1993 revolutionises the stock market.

PRIVATE airlines start operations in 1994.

SERVICE tax introduced in 1994.