A man of passion, intelligence and vision; our former Prime Minister Manmohan Singh can be never forgotten when it comes about writing a history about the Indian economy.
Manmohan Singh was the 13th Prime Minister of India and also one of the most knowledgable people of our country. An economist, he became the Prime Minister of India without any political background and took India one step closer to become the developed country.
The Infamous Economic Uplift of 1991 By Manmohan Singh:
The impassioned speech given by Dr Manmohan Singh as the Finance Minister will always be remembered as one of the most important and powerful speeches in history.
Being the finance minister, he introduced the Budget of 1991 which will always be trademark or proof of the changing fortunes of the Indian economy which at the time was almost near bankruptcy.
In 1991, Manmohan Singh took the oath to be the Finance Minister of India under the rule of former Prime Minister P.V. Narasimha Rao’s Government.
The Indian Economy At That Point
The Indian Economy was functioning as per the Nehruvian-socialist agenda with which India was facing its worse. We had a “total external debt pegged at 23 per cent of Gross Domestic Product and Internal public debt amounting to 55 per cent of the GDP”, which didn’t proof well for the country’s growth.
India was facing a literal down steeply in the economy. These were the times when the employment rates had steeped down to a negative. The economy growth was minimal, the manufacturing sector was in really rough shape.
The fiscal deficit was eight per cent of the GDP, the account deficit stood at 2.5, wholesale price inflation had risen up by a good 13 per cent and retail inflation went even higher up the bend by a whopping 17 per cent.
The Foreign Exchange Reserves standing at a low Rs 2500 crores, which was nearly 75 per cent lower than what it should be and what if was a year before, in 1990.
In short, we can say that the whole economy was crippled and not-functioning. There was a desperate need for a new set of norms that would stop this and make a change in the whole system.
How Did The Economy Revive?
We found a ray of hope in the dark and that was Dr Manmohan Singh. With his vision and resilience, the man who knew his job, who knew what to do exactly and what India needed changed the whole face of the Economy.
Manmohan Singh not only imposed new rules and regulations on the economy but also disclaimed the first budget that the new Rao Government would release, in less than a month from his ascent into the Central body.
After evaluating the situation, Singh realised what Indian Economy actually needed – a shift to economic liberalisation and a strategic end to the ‘license raj’. Not just this, he also introduced “reduced tariffs and interest rates and ended many public monopolies, allowing automatic approval of foreign direct investment in many sectors.”
A Man of Power
Manmohan Singh changed the face of Indian Economy and also did what was needed the best for the country. He not only uplifted the economy when India needed as a Finance Minister but also did his best when he was the Prime Minister of India.
Many will agree that the five years of rule under his government was a golden period and only a man of vision and intelligence can handle it the way he did.