In the annals of Indian economic history, few names shine as brightly as Dr Manmohan Singh’s. The quiet economist-turned-politician who transformed India from a nation on the brink of economic collapse into a global powerhouse stands today as a testament to how visionary leadership can reshape a nation’s destiny.
When Dr Singh took charge as Finance Minister in 1991, India was facing its darkest economic hour. Foreign exchange reserves had dwindled to a mere $1.2 billion, barely enough to cover two weeks of imports. The nation stood at the precipice of default. Yet, in this crisis, Dr Singh saw opportunity. With remarkable courage and foresight, he dismantled the byzantine License Raj system that had shackled Indian enterprise for decades. Foreign investment, previously a trickle, surged to $5.3 billion by 1995-96, while GDP growth soared from an alarming 1.1% to a robust 7.3%. The then Prime Minister P V Narasimha Rao had huge confidence in Singh’s ability to accelerate country’s economic growth and the latter did not disappoint the former.
Perhaps his most enduring legacy as Prime Minister came through the MGNREGA, launched in 2005. This ambitious rural employment program has generated over 3.7 billion workdays by 2023, channeling Rs 14 lakh crore directly into rural households. More significantly, it has become a lifeline for rural women, who comprise nearly 55% of its workforce. The program’s impact on rural poverty has been profound, with poverty rates plummeting from 41.8% in 2004-05 to 25.7% in 2011-12.
Understanding the plight of India’s farmers, Dr Singh’s government took the bold step of implementing a Rs 60,000 crore farm loan waiver in 2008. This decision, while criticised by some fiscal conservatives, brought relief to 36 million small farmers and helped reduce farmer suicides by over 10%.
His vision for India’s industrial growth materialized through the Special Economic Zones policy. What began as 19 SEZs in 2005 has blossomed into over 270 operational zones today, generating exports worth `10.8 lakh crore and providing direct employment to 2.3 million Indians. These zones have become hubs of innovation and industrial excellence, attracting investments exceeding Rs 60,000 crore.
Under his stewardship, India’s pharmaceutical industry transformed into a global powerhouse. Today, one in five generic medicines worldwide comes from India. The sector’s exports have quadrupled from $6.23 billion in 2006-07 to $24.6 billion in 2022-23, while creating employment for over 5 million people. This growth has not just boosted India’s economy but has made life-saving medicines accessible to millions worldwide.
Education and digital connectivity, two pillars of modern economic growth, received unprecedented attention during his tenure. Seven new IITs, six IIMs, and thirty Central Universities were established. Internet connectivity, once a luxury, reached 243 million Indians by 2014, up from just 20 million in 2004. The mobile revolution brought phones to over 900 million Indians, while IT exports surged from $12.9 billion to $87.3 billion.
Perhaps one of Dr Singh’s most remarkable achievements was his masterful handling of coalition politics. Leading the United Progressive Alliance (UPA), he managed a diverse coalition of over 20 political parties during both his terms as Prime Minister. Despite ideological differences ranging from communist parties to regional powerhouses, he maintained stability through consensus-building and diplomatic finesse. The UPA coalition successfully passed 855 bills during its tenure in Parliament, demonstrating effective governance despite the challenges of managing multiple political interests.
His economic stewardship also brought remarkable stability to key economic indicators that directly affected the common citizen. During his tenure, fuel prices remained notably stable and affordable. Petrol prices averaged around Rs 45-50 per litre between 2004 and 2014, with minimal fluctuations. Even during the global oil crisis of 2008, when international crude oil prices touched $147 per barrel, his government managed to maintain domestic fuel prices through prudent subsidy management and economic policies.
The strength of the Indian rupee during his administration tells another compelling story of economic stability. The rupee-dollar exchange rate remained relatively stable, averaging between Rs 43-45 per dollar for much of his first term (2004-2009). Even during the global financial crisis of 2008-09, the rupee showed remarkable resilience. While there was some depreciation in his second term due to global economic pressures, the rate remained manageable at around Rs 45-54 per dollar until 2013. This stability in currency value helped control inflation, boost international trade, and maintain India’s attractiveness to foreign investors.
What sets Dr Singh apart is not just his policies but his approach to leadership. In an era of loud politics, his quiet, data-driven decision-making style and unwavering ethical standards offered a refreshing contrast. He proved that effective governance doesn’t need theatrical flourishes - it needs wisdom, commitment, and a deep understanding of economic principles.
The results speak for themselves. During his tenure as Prime Minister (2004-2014), India maintained an average GDP growth of 7.5% and lifted over 270 million people out of poverty. Today, as India stands proud as the world’s fifth-largest economy, much of the credit goes to the foundation laid by this soft-spoken economist from Gah (his native village in Pakistan).
Dr. Singh’s legacy teaches us that true leadership isn’t about making the loudest noise but about making the right choices. His transformation of India’s economy wasn’t just about numbers - it was about hope, opportunity, and the promise of a better life for millions of Indians. In an age of instant gratification and populist politics, Dr Manmohan Singh’s tenure reminds us that real change requires patience, wisdom, and an unwavering commitment to the greater good.
As India continues its journey toward becoming a global superpower, the economic framework and institutional foundations built during Dr Singh’s era continue to serve as the bedrock of its growth story. For generations to come, his name will be synonymous with India’s economic renaissance - a testament to how one man’s vision can help fulfil the aspirations of a billion people.
Manmohan Singh’s economic stewardship also brought remarkable stability to key economic indicators that directly affected the common citizen. During his tenure, fuel prices remained notably stable and affordable. Petrol prices averaged around Rs 45-50 per litre between 2004 and 2014, with minimal fluctuations. Even during the global oil crisis of 2008 his government managed to maintain domestic fuel prices through prudent subsidy management and economic policies.