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Upon taking over the charge, Manmohan Singh changed the entire landscape with his leadership and intellect. What was once seen as a control-heavy economy, started to show massive growth.
Former PM Manmohan Singh spearheaded the significant initiative for India’s development. (Image: PTI/File)
Former Prime Minister Dr Manmohan Singh passed away on December 26, 2024, at the age of 92. From studying at the Punjab University to reforming the economic scene of the country, the story of his life is truly inspiring. A renowned scholar, Manmohan Singh had hardly any interest in politics when he returned from Oxford after completing his higher studies. He held some respected positions in the Ministry of Finance.
In June 1991 when Manmohan Singh was the Chairman of the University Grants Commission, a surprising phone call changed his life.
Manmohan Singh had just come back to Delhi after attending a conference in the Netherlands. His son-in-law Vijay Tankha received a phone call from PC Alexander, a government executive who invited Manmohan Sing to meet the then-Prime Minister PV Narasimha Rao.
On June 21, Manmohan Singh appeared at the Rashtrapati Bhavan to take oath as the new Finance Minister of India.
“Everybody was surprised to see me as a member of the new team lined up to take the oath of office. My portfolio was allotted later, but I was told straight away by Narasimha Rao ji that I was going to be finance minister,” Manmohan Singh recalled, as quoted in the book, “Strictly Personal: Manmohan & Gursharan”, penned by his daughter Daman Singh.
Back then, India’s economy was going through a turbulent period. Foreign exchange reserves had dipped to Rs 2,500 crore as the government was struggling to cover even two weeks of imports. Global banks had also turned their back on India.
The lack of foreign loans and forex outflows led to inflation. Upon taking over the charge, Manmohan Singh changed the entire landscape with his leadership and intellect. What was once seen as a control-heavy economy, started to show massive growth.
Along with PV Narasimha Rao, Manmohan remodified the economic policies and the results were evident in the 1991 budget. One of the major steps was to abolish Industrial licencing in all but 18 sectors.
As many as 34 industries were allowed for Foreign Direct Investment (FDI). State monopolies were abandoned from several sectors while government stakes were reduced in public enterprises. Under Manmohan Singh’s leadership, the Securities and Exchange Board of India (SEBI) was formed to regulate capital markets.
