In 1991, India was going through an economic crisis. Foreign exchange reserves were on the verge of exhaustion, and the country was burdened with a heavy foreign debt. In these difficult times, Dr. Manmohan Singh, the then Finance Minister, took the bold step of giving a new direction to the Indian economy. In his first budget speech, he said, “No power in the world can stop an idea whose time has come.” This statement became a symbol of the beginning of a new economic era for India.
Economic crisis of 1991 and background of reforms
In 1991, India had only $5.80 billion in foreign exchange reserves, while the country had a foreign debt of $70 billion. Due to political instability, the economy had completely collapsed. At such a time, the then Prime Minister P.V. Narasimha Rao handed over the responsibility of Finance Ministry to Dr. Singh. He was not only entrusted with the task of steering the country out of the crisis but was also given the freedom to implement reforms.
Dr. Manmohan Singh economic liberalization Started.
- End of License Raj: Entrepreneurship and private sector were encouraged.
- Increase in foreign investment: Many multinational companies started investing in India.
- Improvement in foreign exchange reserves: India’s foreign exchange reserves increased rapidly after the reforms.
end of hindu growth rate
Before 1991, the growth rate of the Indian economy was called the “Hindu growth rate”. This term was coined by economist Raj Krishna in 1978. Between 1950–1980, India’s average growth rate was only around 4%. This slow progress is ridiculed hindu growth rate It was said.
Dr. Singh’s reforms completely changed this situation.
- After 1991, India’s growth rate exceeded 7%.
- During his tenure as Prime Minister, this rate reached 8-9%, which is considered the fastest growing economy of the Indian economy. the Golden Age It is said.
- In 2007, India became the world’s second fastest growing economy.
Widespread impact of economic reforms
Dr. Singh’s reforms were to have a far-reaching impact not only in the economic field but also in the social fields.
- Privatization and market openness: Indian market opened to global competition.
- Increase in industrial production: Production increased with the help of foreign investment and domestic industries.
- New employment opportunities: Private sector and foreign investment opened many new avenues of employment.
Corrective steps as Prime Minister
Dr. Manmohan Singh, as Prime Minister, implemented many important schemes for the welfare of the general public.
National Employment Guarantee Scheme (NREGA)
- Rural laborers were given employment guarantee for 100 days.
- Employment and income improved in rural India.
food safety law
- Guarantee of food at subsidized rates to poor families.
Right to Education and Right to Information
- Made education a fundamental right.
- The Right to Information Act promoted government transparency.
farmers loan waiver scheme
- Loan waiver of Rs 60,000 crore provided relief to farmers.
strengthening of banks
- Expanded bank network in rural areas.
- Promoted financial inclusion.
Dr. Singh’s legacy: An inspiration
Dr. Manmohan Singh is considered the chief architect of India’s economic renaissance. He not only brought the country out of the crisis but also put it on a path that gave India a strong position in the global economy.
His reforms proved that with bold decisions and vision, any challenge could be overcome. Dr. Singh’s role in making the Indian economy where it is today will always be remembered.
