The Business of Outsourcing

New Economic Policies

Nehru’s policies remained largely unchanged until the nomination of current PM Manmohan Singh as finance minister under Prime Minister Narasimha Rao in 1991. Dr. Singh instituted broad radical changes to India’s economic system and served as the chief architect of the original economic reform program by opening up the country to foreign capital. Further, he established subsides and incentives to help lure overseas corporations. His liberal policies helped reshape the Indian economy and kick started its dramatic growth, which continues today.

Besides the complete economic overhaul, there were two other factors, which were responsible for the shift towards outsourcing – the dot-com bubble and the Y2K bug.