Manmohan Singh

In 1991, India's fiscal deficit was close to 8.5 per cent of the gross domestic product, the balance of payments deficit was huge and the current account deficit was close to 3.5 per cent of India's GDP.[22] India's foreign reserves barely amounted to US$1 billion, enough to pay for 2 weeks of imports,[23] in comparison to US$600 billion today.[24]

Evidently, India was facing an economic crisis. At this point, the government of India sought funds from the supranational International Monetary Fund, which, while assisting India financially, imposed several conditions regarding India's economic policy. In effect, IMF-dictated policy meant that the ubiquitous Licence Raj had to be dismantled, and India's attempt at a state-controlled economy had to end.

Singh explained to the PM and the party that India is facing an unprecedented crisis.[23] However the rank and file of the party resisted deregulation.[23] So Chidambaram and Singh explained to the party that the economy would collapse if it was not deregulated.[23] To the dismay of the party, Rao allowed Singh to deregulate the Indian economy.[23]

Subsequently, Singh, who had thus far been one of the most influential architects of India's socialist economy, eliminated the permit raj,[23] reduced state control of the economy, and reduced import taxes[22][25]

Rao and Singh thus implemented policies to open up the economy and change India's socialist economy to a more capitalistic one, in the process dismantling the Licence Raj, a system that inhibited the prosperity of private businesses. They removed many obstacles standing in the way of Foreign Direct Investment (FDI), and initiated the process of the privatisation of public sector companies. However, in spite of these reforms, Rao's government was voted out in 1996 due to non-performance of government in other areas. In praise of Singh's work that pushed India towards a market economy, long-time Cabinet minister P. Chidambaram has compared Singh's role in India's reforms to Deng Xiaoping's in China.[26]

In 1993, Singh offered his resignation from the post of Finance Minister after a parliamentary investigation report criticised his ministry for not being able to anticipate a US$1.8 billion securities scandal. Prime Minister Rao refused Singh's resignation, instead promising to punish the individuals directly accused in the report.[27]

Singh was first elected to the upper house of Parliament, the Rajya Sabha, in 1991[28] by the legislature of the state of Assam, and was re-elected in 1995, 2001, 2007[4] and 2013.[29] From 1998 to 2004, while the Bharatiya Janata Party was in power, Singh was the Leader of the Opposition in the Rajya Sabha. In 1999, he contested for the Lok Sabha from South Delhi but was unable to win the seat.[30]

11th President of India A. P. J. Abdul Kalam authorising the Prime Minister designate Manmohan Singh to form the next Government in New Delhi on 19 May 2004

After the 2004 general elections, the Indian National Congress ended the incumbent National Democratic Alliance (NDA) tenure by becoming the political party with the single largest number of seats in the Lok Sabha. It formed United Progressive Alliance (UPA) with allies and staked claim to form government. In a surprise move, Chairperson Sonia Gandhi declared Manmohan Singh, a technocrat, as the UPA candidate for the Prime Ministership. Despite the fact that Singh had never won a Lok Sabha seat, according to the BBC, he "enjoyed massive popular support, not least because he was seen by many as a clean politician untouched by the taint of corruption that has run through many Indian administrations."[31] He took the oath as the Prime Minister of India on 22 May 2004.[32][33]

In 1991, Singh, as Finance Minister, abolished the Licence Raj, source of slow economic growth and corruption in the Indian economy for decades. He liberalised the Indian economy, allowing it to speed up development dramatically. During his term as Prime Minister, Singh continued to encourage growth in the Indian market, enjoying widespread success in these matters. Singh, along with his Finance Minister, P. Chidambaram, presided over a period where the Indian economy grew with an 8–9% economic growth rate. In 2007, India achieved its highest GDP growth rate of 9% and became the second fastest growing major economy in the world.[34][35] Singh's ministry enacted a National Employment Guarantee Act (MGNREGA) in 2005.

Singh's government continued the Golden Quadrilateral and the highway modernisation program that was initiated by Vajpayee's government.[36] Singh also worked on reforming the banking and financial sectors, as well as public sector companies.[37] The Finance ministry worked towards relieving farmers of their debt and worked towards pro-industry policies.[38] In 2005, Singh's government introduced the value added tax, replacing sales tax. In 2007 and early 2008, the global problem of inflation impacted India.[39]

In 2005, Prime Minister Singh and his government's health ministry started the National Rural Health Mission (NHRM), which mobilised half a million community health workers. This rural health initiative was praised by the American economist Jeffrey Sachs.[40] In 2006, his Government implemented the proposal to reserve 27% of seats in All India Institute of Medical Studies (AIIMS), Indian Institutes of Technology (IITs), the Indian Institutes of Management (IIMs) and other central institutions of higher education for Other Backward Classes which led to 2006 Indian anti-reservation protests.

On 2 July 2009, Singh ministry introduced The Right to Education Act (RTE) act. Eight IIT's were opened in the states of Andhra Pradesh, Bihar, Gujarat, Orissa, Punjab, Madhya Pradesh, Rajasthan and Himachal Pradesh.[41] The Singh government also continued the Sarva Shiksha Abhiyan programme. The programme includes the introduction and improvement of mid-day meals and the opening of schools all over India, especially in rural areas, to fight illiteracy.[42]

Singh's government strengthened anti-terror laws with amendments to Unlawful Activities (Prevention) Act (UAPA). National Investigation Agency (NIA) was also created soon after the Nov 2008 Mumbai terror attacks, as need for a central agency to combat terrorism was realised. Also, Unique Identification Authority of India was established in February 2009, an agency responsible for implementing the envisioned Multipurpose National Identity Card with the objective of increasing national security and facilitating e-governance.

Singh's administration initiated a massive reconstruction effort in Kashmir to stabilise the region but after some period of success, insurgent infiltration and terrorism in Kashmir has increased since 2009.[43] However, the Singh administration was successful in reducing terrorism in Northeast India.[43]

The important National Rural Employment Guarantee Act (NREGA) and the Right to Information Act were passed by the Parliament in 2005 during his tenure. While the effectiveness of the NREGA has been successful at various degrees, in various regions, the RTI act has proved crucial in India's fight against corruption.[44] New cash benefits were also introduced for widows, pregnant women, and landless persons.[45][46]

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 was passed on 29 August 2013 in the Lok Sabha (lower house of the Indian parliament) and on 4 September 2013 in Rajya Sabha (upper house of the Indian parliament). The bill received the assent of the President of India, Pranab Mukherjee on 27 September 2013.[47] The Act came into force from 1 January 2014.[48][49][50]

Right of Children to Free and Compulsory Education Act was enacted on 4 August 2009, which describes the modalities of the importance of free and compulsory education for children between 6 and 14 in India under Article 21A of the Indian Constitution.[51] India became one of 135 countries to make education a fundamental right of every child when the act came into force on 1 April 2010.[52][53][54]

Manmohan Singh with American President Barack Obama and George W. Bush at the White House

Manmohan Singh continued the pragmatic foreign policy that was started by P.V. Narasimha Rao and continued by Bharatiya Janata Party's Atal Bihari Vajpayee. Singh continued the peace process with Pakistan initiated by his predecessor, Atal Bihari Vajpayee. Exchange of high-level visits by top leaders from both countries have highlighted his tenure. Efforts have been made during Singh's tenure to end the border dispute with People's Republic of China. In November 2006, Chinese President Hu Jintao visited India which was followed by Singh's visit to Beijing in January 2008. A major development in Sino-Indian relations was the reopening of the Nathula Pass in 2006 after being closed for more than four decades.[55] Premier of the State Council of the People's Republic of China, Li Keqiang paid a state visit to India (Delhi-Mumbai) from 19 to 21 May 2013.[55] Singh paid an official visit to China from 22 to 24 October 2013.[55] Signed were three agreements establishing sister-city partnership between Delhi-Beijing, Kolkata-Kunming and Bangalore-Chengdu. As of 2010, the People's Republic of China is the second biggest trade partner of India.[56]

Relations with Afghanistan have improved considerably, with India now becoming the largest regional donor to Afghanistan.[57] During Afghan President Hamid Karzai's visit to New Delhi in August 2008, Manmohan Singh increased the aid package to Afghanistan for the development of more schools, health clinics, infrastructure, and defence.[58] Under the leadership of Singh, India emerged as one of the single largest aid donors to Afghanistan.[58]

Prime Minister Manmohan Singh with Dmitry Medvedev, Hu Jintao, Dilma Rousseff and Jacob Zuma at the 2011 BRICS summit in Sanya, China

Singh's government worked towards stronger ties with the United States. He visited the United States in July 2005 initiating negotiations over the Indo-US civilian nuclear agreement. This was followed by George W. Bush's successful visit to India in March 2006, during which the declaration over the nuclear agreement was made, giving India access to American nuclear fuel and technology while India will have to allow IAEA inspection of its civil nuclear reactors. After more than two years for more negotiations, followed by approval from the IAEA, Nuclear Suppliers Group and the US Congress, India and the US signed the agreement on 10 October 2008 with Pranab Mukherjee representing India.[59] Singh had the first official state visit to the White House during the administration of US President Barack Obama. The visit took place in November 2009, and several discussions took place, including on trade and nuclear power.[60]

Relations have improved with Japan and European Union countries, like the United Kingdom, France, and Germany. Relations with Iran have continued and negotiations over the Iran-Pakistan-India gas pipeline have taken place. New Delhi hosted an India–Africa Summit in April 2006 which was attended by the leaders of 15 African states.[61] Relations have improved with other developing countries, particularly Brazil and South Africa. Singh carried forward the momentum which was established after the "Brasilia Declaration" in 2003 and the IBSA Dialogue Forum was formed.[62]

Singh's government has also been especially keen on expanding ties with Israel. Since 2003, the two countries have made significant investments in each other[63] and Israel now rivals Russia to become India's defence partner.[64] Though there have been a few diplomatic glitches between India and Russia, especially over the delay and price hike of several Russian weapons to be delivered to India,[65] relations between the two remain strong with India and Russia signing various agreements to increase defence, nuclear energy and space co-operation.[66]

India held general elections to the 15th Lok Sabha in five phases between 16 April 2009 and 13 May 2009. The results of the election were announced on 16 May 2009.[67] Strong showing in Andhra Pradesh, Rajasthan, Maharashtra, Tamil Nadu, Kerala, West Bengal and Uttar Pradesh helped the United Progressive Alliance (UPA) form the new government under the incumbent Singh, who became the first prime minister since Jawaharlal Nehru in 1962 to win re-election after completing a full five-year term.[68] The Congress and its allies were able to put together a comfortable majority with support from 322 members out of 543 members of the House. These included those of the UPA and the external support from the Bahujan Samaj Party (BSP), Samajwadi Party (SP), Janata Dal (Secular) (JD(S)), Rashtriya Janata Dal (RJD) and other minor parties.[69]

On 22 May 2009, Manmohan Singh was sworn in as the Prime Minister during a ceremony held at Rashtrapati Bhavan.[70][71] The 2009 Indian general election was the largest democratic election in the world held prior to 2014 (834 million) and 2019 (912 million), with an eligible electorate of 714 million.

The 2012 report filed by the CAG in Parliament of India states that due to the allocation of coal blocks to certain private companies without bidding process the nation suffered an estimated loss of Rs 1.85 trillion (short scale) between 2005 and 2009 in which Manmohan Singh was the coal minister of India.[72][73]

Manmohan Singh declined to appear before a Joint Parliamentary Committee (JPC) in April 2013 when called upon by one of the members of JPC Yashwant Sinha for his alleged involvement in the 2G case.[74]