Manmohan Singh is remembered for his deep understanding of economics and the historic economic reforms he carried out in India in 1991. Before becoming the Prime Minister, he had been the Finance Minister of India. The reforms carried out by him had given a new direction to the Indian economy.
Manmohan Singh: Former Prime Minister of India Dr. Manmohan Singh passed away on Thursday at the age of 92. He had taken over the responsibility of the country’s Finance Minister and RBI Governor. He also has a special honour. He is the only Prime Minister of the country whose signature is found on Indian currency notes. Even in 2005, when he was the Prime Minister, the Government of India had issued a new Rs 10 note. It had Manmohan Singh’s signature on it. Although during that time the notes had the signature of the Governor of the Reserve Bank of India. But this special change was made on the Rs 10 note.
Apart from this, Manmohan Singh has been the Governor of the Reserve Bank of India. He was in this post from 16 September 1982 to 14 January 1985. During this period, the notes printed used to have his signature. This system still remains in India that the currency is signed by the RBI Governor and not the President or the Prime Minister.
Manmohan Singh is remembered for his deep understanding of economics and the historic economic reforms done in India in 1991. Before becoming the Prime Minister, he had been the Finance Minister of India. The reforms done by him gave a new direction to the Indian economy.
When Manmohan Singh took over the reins of the Finance Ministry in PV Narasimha Rao’s government in 1991, India’s fiscal deficit was close to 8.5 percent of the gross domestic product (GDP), the balance of payment deficit was very large and the current account deficit was also around 3.5 percent of the GDP. Apart from this, the country had only two weeks worth of foreign currency to pay for essential imports. This clearly shows that the economy was in a very deep crisis.
In such a situation, Dr. Manmohan Singh ushered in a new economic era in the country through the Union Budget 1991-92. This was a turning point in the economic history of independent India, which included bold economic reforms, abolition of license raj and steps like opening up of many sectors to private and foreign companies. All these measures were aimed at bringing the economy back on track.
Dr. Manmohan Singh is credited with putting India on the path of a new economic policy. He made a new beginning by allowing foreign direct investment (FDI), devaluation of rupee, reduction in taxes and privatization of public sector companies. His role in initiating a comprehensive policy of economic reforms is acknowledged all over the world. It was his policies that took the Indian economy in the direction of liberalization, globalization and privatization. He continued to implement economic reforms as Finance Minister till 1996.
Manmohan Singh got another chance to serve the country in May 2004 and this time he became the Prime Minister of the country. For the next 10 years, he guided the country’s economic policies and reforms. During his tenure, India’s economic growth rate reached a high of nine percent in 2007 and became the world’s second fastest growing major economy. He introduced the Mahatma Gandhi National Employment Guarantee Act (MGNREGA) in 2005 and Value Added Tax (VAT) replaced sales tax. Apart from this, he worked to benefit crores of farmers by implementing agricultural loan waiver and debt relief scheme of Rs 76,000 crore across the country.
He also led the country during the global financial recession of 2008 and announced a huge stimulus package to deal with the difficult situation. During his tenure, ‘Aadhaar’ was introduced through the Unique Identification Authority of India.
Apart from this, he also promoted financial inclusion on a large scale and bank branches were opened across the country during his tenure as Prime Minister. Other reforms like the Right to Food and the Right to Free and Compulsory Education Act for Children also took place during his tenure.
