A discerning economist, diligent thinker, and an Indian politician, Dr. Manmohan Singh served as the thirteenth Prime Minister of India from 2004 to 2014. He served two consecutive terms as the Prime Minister of India, representing the United Progressive Alliance (UPA). He is the third longest-serving Prime Minister of India after Jawaharlal Nehru and Indira Gandhi. His tenure as the finance minister of India in 1991 ushered a new era of economic reforms and liberalization policies. His sagacious policies and academic approach were practical enough to redraw the economic graph of the country.
Let us understand in detail the life and contributions of Manmohan Singh to the political and economic domains of the country.
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Early Life of Manmohan Singh
- Born on 26 September 1932 in Gah Village of Punjab, his family belonged to the Sikh community. His parents were Gurmukh Singh and Amrit Kaur. After completing schooling, primarily in Urdu medium, his family migrated to Amritsar post the Partition of India. He continued his education at Hindu College, Amritsar, and Punjab University and completed his Bachelor’s and Master’s in Economics in 1952 and 1954. Then he completed Triplos in Economics from St.Johns College, Cambridge.
- After returning to India, Singh served as a teacher at Panjab University. Following that, he went to Oxford University to earn a Doctorate in Philosophy and completed the same in 1962. His research was titled “India’s export performance, 1951–1960, export prospects and policy implications”.
Beginning of Career
- In the initial phase of his career, he served as a senior lecturer in Economics at Punjab University from 1957 to 1959. From 1959, he was associated with the Economics department of Panjab University as a reader. He resumed working as a lecturer in 1963 and continued till 1965. From 1966 to 1969, he worked with the United Nations Conference on Trade and Development( UNCTAD), formed in 1964 under the United Nations, to assure the equitable participation of developing countries in growth. Recognizing his competence in the field of Economics, he was appointed an advisor to the Ministry of Foreign Trade. Meanwhile, he also served as a Professor in International Trade at the University of Delhi.
- In 1972, he was appointed to the Ministry of Finance as the Chief Economic Advisor. In 1976, he took charge as the secretary of the Finance Ministry.
- His unmatched expertise and knowledge in the economic discipline subsequently reflected in his career growth. Until 1982, he worked with the Planning Commission that drew up the Five Year plans. In 1982 he was appointed the Governor of the Reserve Bank of India and continued in the post for the next three years.
- In 1985, he again became a part of the Planning Commission as the Deputy Chairman and continued till 1987. Following that, he worked with a Geneva-based economic policy think-tank, South Commission, till November 1990.
- After returning to India in 1990, he worked as an advisor to the then Prime Minister of India, Chandra Shekhar, on Economic Affairs.
- He became the Chairman of the University Grants Commission (UGC) in 1991.
Career in Politics
- His career took an unexpected turn with an invitation from the then Prime Minister of India, P.V Narasimha Rao, to join the cabinet as the Finance Minister. A turning point in his career was also a turning point in the economic history of Independent India. His inestimable contribution to the Indian economy, on the edge of economic collapse, is unparalleled.
Tenure as Finance Minister of India
The financial crisis before liberalisation:
- India faced the worst economic crisis since its Independence in 1991. The Gulf War of 1990-1991 culminated in increasing oil prices and a fall in remittances from Indians working abroad. India’s fiscal deficit was around 8 % of the Gross Domestic Product, and the balance of payment crisis was evident. The Current Account Deficit was around 3.5 % of the GDP, and the Foreign reserves fell to US$1 billion.
- The International Monetary Fund (IMF) agreed to provide financial assistance to India on certain conditions. As a result of the unprecedented crisis, the government agreed on economic reforms and dismantled Licence Raj.
Liberalization
- As a part of the deregulation of the economy, the federal government, under Manmohan Singh, reduced the control of the state on the economy and reduced import taxes. In addition, the Government, along with the Reserve Bank of India undertook devaluation of the Indian Currency to make Indian exports competitive.
- Manmohan Singh implemented a number of policies for the smooth transition of the economy from a socialistic model to a capitalistic one. He eased licensing regulations, reduced tariffs, taxes, and duties, and removed the barriers to International trade and investment.
- Public monopoly ceased, and many private businesses began to prosper. Following the relaxation of particular provisions of the Monopolies and Restrictive Trade Practices Act, approval of foreign direct investment up to 51 percent was allowed against the earlier cap of 40 percent. Industrial licensing was also removed, except for a few products like tobacco, alcohol, hazardous chemicals, industrial explosives, electronics, industrial chemicals, aerospace, and pharmaceuticals.
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- Privatization of the public sector and elimination of restrictions on Foreign Direct Investment boosted the economy like never before and resulted in its substantial growth. The economic growth rate increased from 3% in the pre-liberalization period to 8-9% in the post-liberalization period.
- However, despite the positive repercussions of economic liberalization, the Narasimha Rao government was voted out of power in 1996, owing to underperformance in important sectors. Manmohan Singh received praise from P.Chidambaram for converting India into a market economy.
Read about the Economic Reforms of 1991 from the linked article
Member of Rajya Sabha
- Manmohan Singh got elected to Rajya Sabha from the Assam legislature for five consecutive terms, including1991,1995,2001,2007, and 2013. He served as an opposition leader in Rajya Sabha from 1998-2004, when the Bharatiya Janata Party was in power. He contested Lok Sabha from South Delhi Constituency in 1999 but lost the seat.
Tenure as Prime Minister of India
- Following the 2004 general elections, Indian National Congress won the highest number of seats in Lok Sabha and formed the United Progressive Alliance (UPA), with its allies. Amidst the surprise of many, Sonia Gandhi chose Manmohan Singh as the Prime Ministerial candidate from UPA, owing to his economic prowess.
- BBC reports specified that though he has not won any Lok Sabha seats, his acceptance among the masses coupled with his political history untainted by corruption were the primary reasons for the same. On 22nd May 2004, his first tenure as the Prime Minister of India started.
Economic policies
- Following his trajectory of milestone achievements as the Prime Minister of India, paving way for liberalization, fastened economic growth, and increased Foreign investment. He promoted the stimulation of economic growth in his term as the Prime Minister.
- Economic growth: He worked along with the then Finance Minister, P.Chidambaram to further aggravate the growth rate from 8-9%.As a result, the economic growth rate in 2007 reached 9%, and India became the second fastest-growing economy in the World.
- National Employment Guarantee Act: To promote employment generation and provide at least 100 days of guaranteed employment to every household, the Ministry of Rural Development, under Manmohan Singh, implemented the Mahatma Gandhi National Rural Employment Guarantee Act in 2005. This social security scheme was successful in assuring income security and livelihood to rural communities.
- Pro-market and Pro-people policies: Manmohan Singh continued with the effective implementation of the Golden Quadrilateral for highway connectivity and the Highway modernisation program. He also continued reforming the banking and financial sectors, along with public sector companies. The Finance Ministry adopted policies to relieve farmers from debt and also implemented pro-industry policies.
- In 2005, Singh’s government replaced the Sales Tax with a more simplified and standardised tax system, known as Value Added Tax (VAT).
Healthcare and Education:
- National Rural Health Mission: Launched on 12th April 2005 by Manmohan Singh, the National Rural Health Mission (NRHM) aimed to provide accessible and affordable healthcare to rural populations in India. The primary task assigned was to meet the healthcare needs of 18 states with weak public health indicators. Thrust was given to develop a community-based, decentralised health delivery system comprising determinants like water, nutrition, education, gender equality, etc.
- Reservation: The decision by the Union Government under Manmohan Singh to implement 27% reservation for Other Backward Class (OBC) students in All India Institute of Medical Sciences (AIIMS), Indian Institute of Technology (IITs), and Indian Institute of Management (IIM’s) led to widespread protests against reservation in 2006. However, the Supreme Court of India upheld the law on 10 April 2008.
- Right To Education Act (RTE): The Right to Education Act, mandating free and compulsory education for children between the age of 6 and 14, was introduced by the Manmohan Singh government on July 2, 2009. As per article 21 A of the Indian Constitution, Education became the fundamental right of children.
- In addition to that, eight IITs were established in Andhra Pradesh, Bihar, Gujarat, Orissa, Punjab, Madhya Pradesh, Rajasthan, and Madhya Pradesh. The government continued with the Sarva Shiksha Abhiyan, started by Vajpayee Government. Bridging gaps based on gender and social classes, it aimed to ensure elementary education for all children and fight illiteracy.
National Security and Governance
- National Investigation Agency: National Investigation Agency was established in 2008 under the National Investigation Act of 2008 by the Manmohan Singh Government. It came into force, post the Terrorist attacks in Mumbai, proclaiming the need for a specialised agency to counter terrorism and deal with terrorism-related activities.
- Anti-terrorism laws were strengthened, and the Unlawful Activities (Prevention) Act (UAPA) was amended to strengthen national security.
- Manmohan Singh maintained consistent efforts to reduce terrorist activities in Kashmir and bring stability to the region. However, insurgencies and terrorism in Kashmir escalated by 2010. Terrorist activities in the North-East region declined under the Singh government.
- Unique Identification Authority of India (UIDAI): The Unique Identification Authority of India was established during the tenure of Manmohan Singh as the statutory authority to issue a 12- digit identity card, based on biometric data. It served twin advantages of ensuring National security and facilitating e-governance.
Important Acts
Important legislations passed during his tenure include:
- Right to Information Act: Passed in 2005 during the tenure of the Manmohan Singh Government, the Right to Information Act gave Indian citizens the authority to seek information from public authorities, hence, making the Government systems more accountable and transparent.
- On 29th August 2013, the Rajya Sabha passed The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act. The act mandated provisions to provide reasonable compensation for families whose land has been acquired, or whose livelihood has been affected due to land acquisition.
Foreign Policy
- The foreign policy of Manmohan Singh was known as the “Manmohan Doctrine”.His policies were rooted in principles like;
1. Economic cooperation and integration with World Economy
2. maintaining peace and stability
3. Strategic Autonomy
- Adhering to principles of non-violence and non-alignment, he maintained strategic relations with most of the neighbouring countries and global powers. The developmental priorities of India were also taken into consideration.
Relations with the USA
- Manmohan Singh was instrumental in improving ties with the United States. In 2005, he initiated the Indo-US civil nuclear deal or 123 agreement. Discussions with George Bush culminated in the signing of the Defence framework in 2005. India received access to Nuclear fuel and technology, while India agreed to separate its military and nuclear facilities and place its nuclear reactors under the supervision of the International Atomic Energy Agency (IAEA).
- This watershed deal between India and USA awarded India with “de facto” status without signing the Non-Proliferation Treaty (NPT). The watershed deal was signed on August 1, 2008, after being approved by IAEA.
- However, the Indo-US Nuclear deal faced strong criticism from opposition parties and political activists in India. Manmohan Singh’s government survived the vote of confidence on a minor scale amidst the strong opposition.
Relations with China
- Relations with China prospered during the tenure of Manmohan Singh. India became one of the major trading partners of China and reached $36 billion in 2007. Nathula Pass in Sikkim, diplomatically closed since the Indo-Sino war in 1962, reopened after nearly four decades during the tenure of Manmohan Singh. Important developments in bilateral relations were initiated post the visit of Chinese President Hu Jintao. His “ten-pronged strategies” included;
1. Comprehensive development of bilateral relations
2. Strengthening Institutional linkages and dialogue mechanisms
3. Consolidating commercial and Economic exchanges
4. Expansion of mutually beneficial Cooperation
5. Development of mutual trust and confidence through defence co-operation
6. Early settlement of outstanding issues
7. Facilitating cross-border connectivity and cooperation
8. Boosting cooperation in science and technology
9. Strengthening cultural ties and people-to-people exchanges
10. Increasing cooperation on the regional and international stage.
- Three sister-city partnerships were signed between India and China. They were; Delhi-Beijing, Kolkata-Kunming, and Bangalore-Chengdu
Relations with Pakistan
- Singh continued with Vajpayee’s policy in relations with Pakistan. Even Though Pakistan President paid a visit to India in 2005, no crucial developments were made to establish peace between both. On April 7, 2005, Manmohan Singh flagged off the first bus service between Srinagar and Muzaffarabad across the Line of Control. However, Manmohan Singh maintained a cordial and pragmatic relationship with Pakistan. He did not take any serious efforts to strengthen ties with Pakistan following the Mumbai terror attacks in 2008.
Relations with Japan
- In 2006, Manmohan Singh signed the ‘India-Japan Strategic and Global Partnership following his visit to Japan. India had close connections with Japanese automobile manufacturers, including Suzuki, which led to bigger investments and collaboration in infrastructural projects. Japan initiated the “MALABAR” exercise in the Indian Ocean, along with Australia and the US, in 2007. India and Japan signed a military cooperation agreement to fight terrorism. In addition, Japan offered low-interest loans worth US$ 4.5 billion for the construction of high-speed rail between Delhi and Mumbai.
Relations with Israel
- Manmohan Singh maintained a bonhomie with Israel throughout his tenure. Both countries made remarkable progress in relations through investments.
- Relations with European countries, including the United Kingdom, Germany, and France, were also stable. Relations with Brazil and African countries also improved during his tenure. The Indo-African summit of 2006, hosted by New Delhi, was attended by leaders of African countries. He also maintained relations with Iran along with negotiations on the Iran-Pakistan-India pipeline.
- Relations with Russia, one of the allies of India, were indeed smooth, apart from a few clashes over the delay of weapons to India.
Second term as Prime Minister
- The 15th Lok Sabha elections favoured the United Progressive Alliance (UPA), and they managed to secure a majority of 322 members along with the support of the Bahujan Samaj Party, Samajwadi Party, and few other parties.
- Manmohan Singh became the second Prime Minister of India, after Jawaharlal Nehru, to be elected for a second term after the completion of the first one.
- In 2012, a report submitted by the Comptroller and Auditor General (CAG) accused him of having made a loss of 1.85 trillion for allocating coal mines to private players without bidding when he served as the coal minister. He was asked to meet the Joint Parliamentary Committee in the 2G case.
- Manmohan Singh resigned from the post of Prime Minister following the 16th Lok Sabha elections in 2014.
Awards and Honours
- Doctor of Civil Law Degree (2006) – University of Oxford
- Doctor of Civil Law Degree (2006) – Cambridge University
- St.John’s College, under Cambridge University, named a Ph.D. scholarship as the “Dr.Manmohan Singh Scholarship ”
- Doctor of Letters (2008) – Benaras Hindu University
- Honorary Doctorate Degree – Moscow State Institute of International Relations
- Received Indira Gandhi Prize for Peace, Disarmament, and Development (2017)
Frequently Asked Questions about Manmohan Singh
How did Manmohan Singh save the Indian economy in 1991?
The 1991 crisis in India, also known as the Balance of Payment crisis culminated in a high fiscal deficit, a mounting current account deficit, and a loss of confidence in the policies of the government. The government under Manmohan Singh abolished Licence Raj and promoted the liberalisation of the economy. This paved the way for increased Foreign Investments, eased restrictions on the private sector, and increased employment opportunities.
What were the foreign policies of Manmohan Singh?
The foreign policies of Manmohan Singh, known as the “Manmohan Doctrine” involved the expansion and strengthening of bonds with the United States (India-US Civil Nuclear Agreement), China (ten-pronged strategy and opening of Nathula Pass), and Pakistan (stable relations). He strengthened ties with Israel, Japan, Brazil, and South Africa. He followed the principles of Non-violence and Non-Alignment. His relations with European Countries were also cordial.
How was Manmohan Singh instrumental in changing the economic landscape of the country?
His tenure as the Finance Minister of India and Prime Minister of the nation reflected his consistent efforts to improve economic growth and development. His reform-oriented approach and structural changes that liberalised the economy gave a new impetus to the economic landscape of the country. Under his tenure, India achieved a remarkable growth rate of 8-9% and became the second fastest-growing economy in the world.
Who was the finance minister of India when the LPG model was accepted?
Dr.Manmohan Singh was the Finance Minister of India when the LPG model was accepted. P.V Narasimha Rao, the then Prime Minister of India, is known as the architect of landmark economic reforms in India.
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