Manmohan Singh’s Economic Revolution: Decisions That Reshaped India

by YOUxTalks | Dec 27, 2024 | Politics

Dr. Manmohan Singh, Ex Prime Minister and a pivotal figure in the nation’s economic transformation, passed away on December 26, 2024, at the age of 92. Born on September 26, 1932, in Gah, Punjab (now in Pakistan), Singh’s early life was marked by academic brilliance. He earned his degrees from the University of Cambridge and the University of Oxford, specializing in economics. His scholarly excellence laid the foundation for a career dedicated to public service and economic development.

He was an Indian politician, economist, academic, and bureaucrat, who served as the 13th prime minister of India from 2004 to 2014.

Finance Minister of India

As Finance Minister from 1991 to 1996 are widely regarded as a turning point in India’s economic history. These reforms, implemented under the leadership of Prime Minister P.V. Narasimha Rao, addressed a severe economic crisis.

Liberalization

Removal of License Raj: Abolished the system that required businesses to obtain licenses for most economic activities, reducing bureaucratic hurdles.
Rationalization of Tax Structure: Introduced measures to simplify and streamline the tax system, including reducing income and corporate tax rates.
Abolition of Monopolies: Repealed the Monopolies and Restrictive Trade Practices (MRTP) Act to encourage competition.

Privatization

Encouraged private sector participation in industries that were previously dominated by the government.
Autonomy to Banks: Granted more operational independence to public sector banks.
Strengthening the Stock Market: Established the Securities and Exchange Board of India (SEBI) to regulate and develop capital markets.

Globalization

Reduction of Trade Barriers: Lowered import tariffs, quotas, and restrictions to integrate the Indian economy into the global market.
Allowed foreign direct investment (FDI) in key sectors such as telecommunications, insurance, and banking.

He was famously quoted as saying in parliament during his first budget speech in 1991 that “no power on Earth can stop an idea whose time has come”.

Prime Minister of India

The Congress party made a comeback in 2004 elections, handing a surprise defeat to the government led by Atal Bihari Vajpayee of the Bharatiya Janata Party (BJP). Congress chief Sonia Gandhi was widely expected to head the government, but many members of the outgoing ruling party raised questions over the fact that she was born in Italy. She declined to take up the post and instead proposed Singh’s name, who was seen as a non-controversial, consensus candidate of great personal integrity.

In 2004, Singh became the first Sikh to hold the office of Prime Minister, leading the country until 2014.

Nuclear Agreement: His tenure was marked by robust economic expansion and the landmark civil nuclear agreement with the United States in 2008, which ended India’s nuclear isolation and opened avenues for energy collaboration.
Right to Information: He guaranteed the right to seek information from the government, allowing citizens an extraordinary power to hold officials accountable.
Right to Education (RTE) Act, 2009: He also brought in a law that guaranteed the right to free and compulsory education for children between the ages of 6 and 14, significantly reducing the school dropout rates.

Despite his administration’s achievements, Singh’s tenure faced challenges, including allegations of corruption and internal party conflicts. Nevertheless, his personal integrity and commitment to the nation’s progress remained unquestioned.

“I think taking into account the circumstances and the compulsions of a coalition polity, I have done as best as I could do under the circumstances,” he said.
For Sikh Riots 1984: “I have no hesitation in apologising to the Sikh community. I apologise not only to the Sikh community, but to the whole Indian nation”

After retiring from active politics earlier in 2024, Singh’s health declined, leading to his passing in New Delhi. The Indian government has declared a seven-day mourning period, with national flags at half-staff and the cancellation of official events. Leaders across the political spectrum have paid homage to Singh’s contributions, underscoring his role as a statesman and visionary economist.

Dr. Manmohan Singh’s life and work have profoundly influenced India’s trajectory, earning him a place among the nation’s most esteemed leaders. His vision and reforms continue to shape India’s economic policies and development strategies.