Cycles in Indian economic liberalization, 1966-1996

Since independence Indian economic policy management has relied on the central government for implementation of macroeconomic policy and administration of controls, subsidies, tariffs, and quotas. There have been three major episodes of economic liberalization, in 1966-68, 1985-87, and 1991-94, but in none was liberalization fully implemented. Who and what launched these episodes? What has prevented the reduction of economic controls? Will the cycle of incomplete liberalization continue, or are conditions right for India to open its economy? Two major conclusions stand out. No single theory can explain what launched the liberalization episodes, but a consistent set of factors explains why liberalization has never fully succeeded.