Manmohan Singh; The Man Who Forged a New Path for India
By: Adit Mehta
On Dec. 26, the 14th prime minister and 22nd finance minister of India, Dr. Manmohan Singh, passed away. India mourned his passing over the days that followed.
Dr. Singh was an especially recognized politician and economist during his time in the limelight, making large strides in India’s policy to advance its power within the global space and for the betterment of its people. Many have described him as one of the most influential Indian leaders of his time. Here is a look at his legacy.
Saving the Indian Economy
When Singh became India’s finance minister in 1991, the nation’s economy was on the verge of collapse–only around $1.3-1.5 billion remained in the country’s foreign exchange reserve, barely enough to cover two weeks of imports. India’s credit rating had plummeted, drastically worsening its reputation and leaving the nation unable to secure loans effectively.
Singh knew drastic changes were needed to save India, stating in his famous budget speech, “The crisis in the economy is both acute and deep. We have not experienced anything similar in the history of independent India.” The inherent issue was not India’s supply of funds, but rather, its policies, which had failed to lift the economy.
Singh introduced sweeping reforms to transform the nation’s economy, including wide-scale deregulation and privatization of the Indian economy, radically changing the country forever. Singh aimed to increase the efficiency of the industries within India by modernizing them and inspiring productivity through competition. He maintained that allowing the market more freedom would boost its growth, attract the attention of foreign investors, and eliminate the existing “License Raj,” a system requiring government approval for most business activities. Singh eased foreign trade restrictions and lessened import tariffs as well, devaluing the rupee and allowing for more competition abroad.
Singh’s focus on the rapid modernization of Indian market’s was met with much resistance. Many worried that the rapid liberalization of India’s economy would give too much control to companies, worsening the economy. However, Singh argued, “Over-centralization and excessive bureaucratization of economic processes have proved to be counterproductive. We need to expand the scope and the area for the operation of market forces.”
Today, India is the world’s 3rd largest economy, with a GDP of 3.39 trillion. Its foreign reserves are up to around $640.28 billion. India’s per capita growth has also seen massive gains, with its growth never falling below 4% after Singh’s reforms. He saw more citizens than ever lifted over the poverty line and opened up the Indian economy to increased foreign trade and investment, creating numerous jobs and saving an estimated 138 million people from poverty.
Landmark Deal with the United States
Ever on the path to boost India’s global standing, Manmohan Singh made waves through a landmark nuclear deal with the United States. In 2005, Singh and President George W. Bush announced an agreement to bring nuclear energy to India, following decades of long-standing nuclear restrictions.
Singh’s assertive stance on nuclear power was met with much resistance in India’s parliament, which threatened to withdraw its support for Singh’s government.
As a surprise to many, Prime Minister Singh, viewed as a rather docile leader, defiantly held his stance on the deal, famously telling the left’s leader, “If you want to withdraw support, so be it."
Despite the political turmoil, Singh’s government managed to secure the deal. In 2008, three years after Singh first announced his nuclear deal, the International Atomic Energy Association approved a safeguards agreement with India, and the Nuclear Suppliers Group granted a waiver to India to have access to civilian nuclear technology.
The nuclear deal not only improved U.S.-India relations but also provided India with an alternative option to energy usage and is being hailed as a top solution to the climate crisis within the country. According to the Indian Department of Atomic Energy, civil nuclear power now produces 37,456 million units of nuclear energy, saving 37 million tons of carbon dioxide in a single year.
Social Rights Programs
Recognizing the widespread poverty in rural India, Dr. Singh sought to introduce social welfare programs that would help underprivileged communities. He introduced three major initiatives: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the Right to Education Act (RTE), and the Right to Information Act (RTI).
The Mahatma Gandhi National Rural Employment Guarantee Act provides at least 100 guaranteed days of paid employment every financial year to those who volunteer to receive work, providing a safety net for those in need.
The Right to Education Act made education a fundamental right for children aged 6 to 14. Private schools were required to reserve 25% of their student body for low-income, underprivileged children. Additionally, no children would be held back or expelled during their elementary education, ensuring all would receive it in some form.
The Right to Information Act required that upon request, the government must provide government information to a citizen. The act encouraged transparency and trust between the Indian government and its citizens, ensuring that if need be, a citizen could use this information to hold the government accountable for wrongdoing.
During his tenure as a prime minister, Dr. Singh aimed to increase the Indian people’s trust in their own government and to know that it was one for the people. While these programs had noble intentions, they were not without flaws. The MGRNEGA’s application process was often unclear, limiting its accessibility. The RTE system failed to address the underlying issues affecting literacy rates, creating a difficult environment for both students and teachers to learn effectively. The RTI act strengthened the relationship between the government and its constituents in theory, but proper enforcement and delivery of said information, especially during the pandemic, made it difficult to rely on.
Despite these challenges, Singh’s initiatives still laid the groundwork for lawmakers to push for further reform. For instance, in 2019, India’s parliament amended the RTE act by scrapping its no-detention policy, arguing that the policy did not adequately help students learn.
His Legacy
Manmohan Singh was certainly one of the most instrumental politicians in Indian history. His work to bring it into the global space paved the way for its future endeavors. However, his tenure as prime minister was a mix of success and failure. While his economic reforms and nuclear deal cemented his place in history, his administration struggled with corruption scandals during his second term.
But Singh always believed in the potential of his ideas. At the end of his second term as prime minister, he stated “I do not believe I have been a weak prime minister. History will be kinder to me than contemporary media or the Opposition.”
Indeed, Singh’s policies were a blueprint for his view of India’s future. While they may not have been perfect, his work still lifted millions out of poverty, modernized the economy, and improved India’s global standing, remaining as a leader who prioritized the well-being of his people.
As the world starts to grapple with newfound challenges, the legacy of those like Manmohan Singh reminds us to strive for a future that everyone may benefit from.
