How Manmohan Singh Revolutionized India's Economy and Secured the US Nuclear Deal

India, on Thursday, bid farewell to one of its most distinguished leaders, former Prime Minister Manmohan Singh, after his long battle with illness. Singh, aged 93, left behind a legacy that reshaped the nation's economic landscape and foreign policy, notably through his instrumental role in the 2008 US-India Civil Nuclear Agreement. Despite facing considerable opposition, Singh's steadfastness on the nuclear deal underscored his tenure as a period of decisive action and significant economic reforms.

Singh's era as Prime Minister was marked by a commitment to economic liberalization, which he initiated as the Finance Minister under Prime Minister Narasimha Rao. Facing a dire economic crisis in 1991, with India's foreign exchange reserves at a critically low point, Singh and Rao embarked on a journey to transform the Indian economy from a state-controlled, protectionist system to a more open, market-oriented one. They dismantled the Licence Raj, welcomed foreign direct investment, and unleashed a wave of economic reforms that spurred unprecedented growth, with the GDP growth rate soaring to an average of 7.7% during Singh's tenure.

Despite the significant achievements, Singh's leadership was not without its challenges. The UPA II years witnessed a slowdown in government action, often referred to as policy paralysis, as the administration grappled with corruption scandals. This period saw a reduction in the government's communication and a stagnation in policy development, overshadowing the earlier achievements of Singh's premiership. Yet, he managed to introduce measures that brought relief to many, like the MNREGS, which emerged as the world's largest job guarantee scheme, and initiatives that supported farmers.

Steering India Through Challenges

Singh's calm and composed demeanor belied a strong resolve to navigate India through both economic and political challenges. This was evident in his handling of the India-US Civil Nuclear Agreement, a contentious issue that saw fierce opposition. Supported by then-President APJ Abdul Kalam, Singh managed to convince enough parties to back the deal, though he faced stiff resistance from the Left. The government's survival of a confidence vote, by a narrow margin, was a testament to Singh's political acumen and dedication to securing India's interests on the global stage.

The nuclear deal with the US, finalized during Singh's tenure, marked a significant shift in international relations, allowing India access to civilian nuclear technology and establishing it as a responsible nuclear power. This agreement, along with Singh's leadership during the 2008 economic crisis, solidified India's position on the world stage and earned him considerable support, particularly from the middle class, which was reflected in the 2009 Lok Sabha election results.

A Legacy of Economic Transformation

Singh's legacy is indelibly linked to the economic transformations he spearheaded. As Finance Minister in 1991, he introduced groundbreaking reforms that ended decades of protectionism and opened up the Indian economy to global markets. His efforts not only stabilized the faltering economy but also set the stage for a period of robust growth, making India a key player in the global economy. His famous quote, "No power on earth can stop an idea whose time has come," from his 1991 Budget speech, encapsulates the visionary approach Singh adopted in propelling India towards becoming a major economic power.