Rajan highlighted Singh’s bold reforms during the 1991 economic crisis, crediting him with laying the foundation for three decades of sustained economic growth.
“In the face of a currency crisis, he liberalised imports. Ordinarily, one would think it would suddenly boost imports, and you would have a problem. But he saw that as part of a package which would set India on a new course. And we’ve had three decades of robust growth since then, 6% by and large, something nations would kill for. And he laid the foundations for that, of course, along with Prime Minister Narasimha Rao,” Rajan noted.
Subbarao commended Singh’s foresight and ability to balance complex economic challenges with pragmatic solutions.
Manmohan Singh, one of India’s most respected leaders, passed away on December 26 at the age of 92. Known for his groundbreaking contributions as an economist, former RBI governor, and two-term Prime Minister, Singh’s legacy continues to shape India’s economic and political landscape.
Subbarao also highlighted the transformative impact of the 1991 economic reforms on India’s middle class.
Before these reforms, imports like televisions and refrigerators were prohibitively expensive due to tariffs as high as 250%.
The liberalisation of imports, along with the removal of industrial licensing and a shift away from reliance on public sector investment, were key pillars of these reforms.
These measures not only made consumer goods more accessible but also bolstered private sector participation, integrating the nation’s economy and driving growth across regions.
Subbarao added that this newfound economic freedom allowed the middle class to experience unprecedented income growth and wealth creation, reshaping their aspirations and lifestyles
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Narendra Jadhav, a former Rajya Sabha MP, also paid tribute to Manmohan Singh.
He reflected on Singh’s critical role during one of India’s worst economic crises. At the time, India’s fiscal deficit was alarmingly high, inflation soared to nearly 19%, and foreign exchange reserves had plummeted to less than $1 billion, Singh introduced a “new economic policy” that shifted India from a closed, centrally planned economy to a more open and market-oriented system.
While these policies were common globally, they were revolutionary for India.
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Arvind Panagariya, Chairman of the 16th Finance Commission and Former Vice Chairman of NITI Aayog also reflected on Singh’s critical role in the 1991 economic reforms, particularly in the decision to devalue the Indian rupee despite opposition from advisors and initial hesitation from Prime Minister Narasimha Rao.
V. Anantha Nageswaran, Chief Economic Adviser, remarked that Dr. Singh’s contributions as Finance Minister in 1991 remain firmly etched in the nation’s memory. He noted that there was no significant economic role that Dr. Singh did not play throughout his distinguished career.
Many of the steps he took both as Finance Minister and Prime Minister continue to hold relevance today. Despite his monumental achievements, Dr. Singh remained, at heart, a very simple man, he added.
Rangarajan, former RBI Governor, reflected on Dr. Manmohan Singh’s leadership, stating, “Look at the national point of view and do what is right. What happens to individual comes second. I think that kind of an approach to problems is something that one has to learn from him.”
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