Manmohan Singh, who was India's 14th Prime Minister and a feted economist, has left a legacy that reshapes the future of the country's economy. Many claim him as the master builder of Indian economic liberalization. A period that went through the darkest phase in the nation's financial life was being navigated through by India when he acted as a Finance Minister at the helm in the early 1990s. His term defined a change in an accelerated growth level and greater openness to a global economy.

In 1991, India had a huge balance of payments crisis. Foreign exchange reserves were just enough to cover imports for a couple of weeks. Inflation was running rampant, unemployment was rising, and the fiscal deficit was at an unsustainable level. It is during this point of time that Singh has managed to develop far-reaching economic policies that have taken along decades of bureaucratic controls. In this sense, he introduced a new period of liberalization that defined India's position in the global economy once again. His leadership during the point is a testamur of statesmanship and wide-ranging contributions towards his country.

Key Achievements

Abolition of the License Raj

The Indian economy was constrained by excessive bureaucratic restrictions – in other words, the License Raj. Singh took the initiative to free the country from these myths, thereby freeing industries from the clutches of bureaucratic control. In that way, individual businesses were given greater freedom, encouraging entrepreneurship and competitive success in the market.

Globalization

Acknowledging that it was essential to integrate India into the global economy, Singh initiated comprehensive reforms related to trade policies.

- To facilitate easy access to foreign products, he eased the import license rule for most goods.

- Dramatic tariff reductions were made to make markets in India competitive.

- Investment restrictions in the area of Foreign Direct Investment (FDI) were relaxed, inviting multinational companies to set up shop in India.

Restructuring of the Financial Sector

It was during this time that Singh modernized the country's financial environment, establishing the Securities and Exchange Board of India (SEBI) to regulate and open up the capital markets.

Reforms in banking policies introduced efficiency and competition and strengthened financial institutions. Foreign exchange controls were relaxed, and the door was opened to a more convertible rupee.

Economic growth and stability

India's GDP growth rate rose to 6% per year under Singh's leadership in the 1990s, up from the "Hindu growth rate" of 3-4% in previous decades. It was therefore a compelling rejection of the old paradigm by allowing a sustained regime of economic growth, boosting investment confidence, and allowing India to firmly take its place at the global table.

Legacy of overcoming crises

Manmohan Singh's legacy at that time involved more than crisis management. His reforms not only created economic stability but also transformed India into a dynamic and resilient economy capable of withstanding future crises.

From 2004 to 2014, Singh led an economic growth agenda as Prime Minister. His government introduced several key initiatives, such as MGNREGA and infrastructure development, demonstrating a continued commitment to economic growth.