Remembering Dr Manmohan Singh, former Prime Minister of India

Oinam Nabakishore Singh *

Prime Minister Dr Manmohan Singh visit Imphal on 03 December 2011 :: Pix - Bullu Raj

In the demise of Dr Manmohan Singh, former Prime Minister of India, the Nation has lost a gentleman, economist, bureaucrat statesman and reformer. He was born at Gah, Punjab, now in Pakistan, in British India on the 26th September, 1932. His family migrated to India in 1947 after partition of British India into India and Pakistan. He studied Economics at Punjab University and got his Master degree in 1956.

Later on, he obtained PhD from Oxford University and he taught at Punjab University as Professor till 1965. From 1966 to 1969, he worked for United Nations Conference on Trade and Development (UNCTAD). In recognition of his talent in economics, he was appointed Advisor in the Ministry of Foreign Trade. He also taught international trade at Delhi School of Economics, Delhi from 1969 to 1971.

He worked as Chief Economic Advisor of the Government of India from 1972 to 1975, and he was appointed as Finance Secretary in the Ministry of Finance in 1976. In recognition of his understanding of finance and economics, he was appointed to the prestigious post of the Governor of the Central bank of the country, Reserve Bank of India, while late Pranab Mukherjee was Finance Minister, for the period from 1982 to 1985.

The job of Governor of Reserve Bank includes shaping monetary policy by using tools like regulating interest rate, repo rate, monetary stance in order to strike a balance between growth and inflation. Regulating foreign exchange rate of rupee against other major currencies like US dollar, UK Pound sterling, etc. and monitoring balance of payment situation fall in the realm of Governor of Reserve Bank.

Dr Manmohan Singh went on to become Deputy Chairman of the all powerful Planning Commission of India, from 1985 to 1987, which had the important job of allocating plan funds to the States, Union Territories and various Ministries of the Union Government.

In fact, Planning Commission was established under Pandit Jawaharlal Nehru, Prime Minister with the main objective of bringing growth and develop- ment in line with Centralized planned economic system of the then Union of Socialist Soviet Republic (USSR), where the role of investment by the State was given pivotal importance.

Although Prime Minister was the Chairman of Planning Commission, Deputy Chairman and Advisors were the ones who made the final call on all investment proposals. With such vast exposure to the state of affairs of various sectors and areas of economy in the country, Dr Manmohan Singh was already equipped to handle more important tasks for the country.

Dr Manmohan Singh served as secretary general of the South Commission, an independent economic think tank, based at Geneva, Switzerland from 1987 to 1990. On his return to India in November, 1990, he was appointed as Advisor to the Prime Minister, Chandrasekhar, on economic affairs. In March, 1991, Dr Manmohan Singh was appointed as Chairman, University Grants Commission.

When PV Narasimha Rao became Prime Minister of the country in June, 1991, the country faced a huge financial crisis because of several factors like fall of Eastern Bloc of communist countries with which India had trade in rupees and increasing oil prices due to Gulf War. India’s foreign exchange reserve fell to about US$ 1 billion in June, 1991, which was enough to meet import of two weeks.

Such low reserve would have snapped further import of oil, which would have completely disrupted the economy of the country. Further, there was imminent possibility of default in repayment of debt to external creditors, which would have brought a big question on the credibility of India as a credible sovereign Nation. It was, indeed, a dire situation faced by the new Government of PV Narasimha Rao.

To handle the critical financial and economic situation, Prime Minister, Narasimha Rao picked Dr Manmohan Singh, an economist and bureaucrat, to be Finance Minister. Having studied international trade for his PhD thesis at Oxford University and held the post of Governor of Reserve Bank of India, Dr Singh knew the solution to the extremely low level of balance of payment situation.

Indian rupee was said to be over-valued by International financial institutions like World Bank and International Monetary Fund, and as a result Indian goods were not competitive in the export market. To boost exports and earn dollars, the immediate step initiated by Dr Manmohan Singh was to devalue/depreciate Indian rupee against dollar.

Reserve Bank of India announced devaluation of rupee in two steps-9% on 1st July and 11% on the 3rd July, 1991. There was a strong criticism to the devaluation of Indian rupee from some quarters especially Opposition parties, who see strong currency to be an indicator of the strength of the country. Prime Minister, PV Narasimha Rao backed Dr Manmohan Singh in all steps initiated by the latter to usher in an era of reforms and liberalization in Indian economy.

Dr Manmohan Singh initiated a series of reforms and liberalization. Since Independence and till 1991, Indian economy could be described as a closed one as both exports and imports were highly regulated. In fact, there were need for export or import license from Government, which acted as obstacles. Further, foreign exchange was highly controlled by Reserve Bank of India. High tariffs on imports acted like a barrier to many industries.

Import of capital goods were regulated; consequently, access to technology from abroad was controlled. Foreign Direct Investment in the country was restricted with a lot of conditions. It was the day of License and Permit Raj. Industries and business had little freedom in setting up new business and increasing capacity.

Dr Manmohan Singh as Finance Minister did away with License and Permit Raj, liberalized exports and imports, and restrictions on FDI was removed to a great extent. Results of liberalization and reforms were visible in the years that followed. In fact, a large part of credit for the rapid economic growth witnessed in India since late nineties till now should go to the measures started by Dr Manmohan Singh.

In fact, but for the support of Shri Rao, who was a great politician and leader, it would have been really difficult to carry out the reforms by Dr Singh. Dr Manmohan Singh became Prime Minister of the country in 2004 after Mrs. Sonia Gandhi turned down the proposal from her party leaders.

Choice of Dr Manmohan, who was regarded mainly as an economist rather than a politician left many senior leaders of Congress Party baffled. Nevertheless, Dr Manmohan Singh is attributed with several landmark legislations like National Rural Guarantee Act, Right to Information, Right to Education Acts, National Food Security Act, etc. Such legislations provided the much needed social security to the people below poverty line.

Another notable achievement was improvement of bilateral relation between USA and India especially signing of civil nuclear deal, which lifted the restrictions in supply of technology and uranium to India by Nuclear Supply Group. He is also responsible for starting QUAD with USA, Japan and Australia to bring the four countries together in the Pacific Ocean area to meet challenges from China.

Apart from his achievements in offices, it would be appropriate to note some of the human qualities of Dr Manmohan Singh. Since he left Pakistan during partition to come to India, it would not be wrong to say that he would have faced a lot of financial difficulties during his college and university days. Through hard work, he was a topper in all examinations in college and universities in spite of adversities.

He is known for his modesty and humbleness throughout his life. During his days, as Prime Minister and Finance Minister, he exhibited qualities of humbleness. After he ceased to be Finance Minister, this author saw him at Mumbai airport in the security enclosure while travelling to Delhi around 1998. He had a suitcase in his hand, which was covered with baggage tags. He looked very simple and unassuming.

He is also said to be very honest in his life. His gentleness and soft speech will be remembered as his signature style. After his death on the 26th December, 2024 at the age of 92, not only the leaders of the whole Nation, but also foreign dignitaries poured in praises of Dr Manmohan Singh for what he did for India.

It will not be an exaggeration to say that India would have been much worse off but for the reforms and liberalization initiated by him.

May his soul rest in peace.