India mourns the loss of Dr. Manmohan Singh, the 13th Prime Minister, who passed away today at the age of 90. Renowned as a visionary economist and statesman, Dr. Singh played a pivotal role in transforming India’s economy, first as Finance Minister (1991–1996) and later as Prime Minister (2004–2014). Here are seven of his landmark decisions that reshaped India’s economic landscape:
1. Liberalization of the Economy
In 1991, Dr. Singh ended the oppressive License Raj, opening all but five national security sectors to private enterprise. This shift allowed businesses to operate freely, fostering industrial growth and job creation.
2. Currency Devaluation
To boost trade and exports, Dr. Singh devalued the Indian rupee by 20 percent, making Indian goods more competitive globally. This move provided much-needed employment and revenue for the economy.
3. Emergency Financial Measures
Facing a balance-of-payments crisis, Dr. Singh convinced the Reserve Bank of India to mortgage gold reserves with the Bank of England. This bold step secured a critical loan from the International Monetary Fund (IMF), averting a national debt default.
4. Strengthening the Financial Markets
Dr. Singh empowered the Securities and Exchange Board of India (SEBI) as the sole regulator of stock markets, ensuring transparency and trust in India’s financial markets. Additionally, his government introduced tax concessions to support the burgeoning services sector.
5. Promoting Foreign Investment and Entrepreneurship
Dr. Singh invited foreign direct investment to boost industrialization, while simultaneously encouraging domestic entrepreneurship. This dual strategy accelerated India’s transition to a globally competitive economy.
6. Indo-US Nuclear Deal
During his tenure as Prime Minister, Dr. Singh secured the Indo-US nuclear deal despite political opposition. This agreement marked a turning point in India’s energy policies, paving the way for enhanced energy security and international collaboration.
7. Implementation of MNREGA
The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) of 2005 provided a safety net for rural households. This policy enhanced rural livelihoods while ensuring financial inclusion.
Recognitions and Impact
Dr. Singh’s economic decisions earned him global accolades, including awards like the Padma Vibhushan and the Finance Minister of the Year from prestigious organizations. His policies not only rescued India from economic stagnation but also positioned it as a global economic player.
Summary
Dr Manmohan Singh’s economic reforms as Finance Minister and Prime Minister reshaped India. From liberalization and rupee devaluation to the Indo-US nuclear deal and MNREGA, his visionary policies bolstered trade, industrialization, and financial stability, fostering 8.5 percent GDP growth for much of his tenure. His passing marks the end of an era for India.
