​1986: V P Singh moves to end licence raj

The 1986 Budget was the first step towards eliminating the license raj — a system where firms were required to obtain several licenses from various government agencies to open a medium or large size business in India. The budget — presented by VP Singh — was called “carrot and stick” since it offered punishments as well as rewards.

In this budget the government launched an intense drive to target black marketers, smugglers and tax evaders.