Times when Manmohan Singh was an economist first, a politician second

From the 1991 economic crisis to his critique of demonetisation, former PM Manmohan Singh's legacy is marked by his quiet confidence, intellectual depth, and transformative vision for India

“I do not believe I have been a weak Prime Minister. History will be kinder to me than contemporary media or the Opposition,” Manmohan Singh had said to the press in January 2014, as he faced criticism near the end of his second term. These words, reflective of his quiet confidence and steadfast commitment, encapsulate the legacy of a man whose contributions to India’s progress transcend political boundaries.

 

From steering the country through its darkest economic crisis to championing reforms that redefined India’s global standing, Singh proved time and again that he was an economist and intellectual first, a politician second.

 

 

Navigating India’s economic crisis

The early 1990s marked one of the gravest economic crises in India’s history. A severe balance-of-payments deficit, compounded by external factors like the Gulf War, left the country with foreign exchange reserves barely sufficient to cover three weeks’ worth of imports. By July 1991, the rupee had sharply devalued, and the economy teetered on the brink of collapse.

 

It was against this backdrop that Prime Minister P V Narasimha Rao inducted the apolitical and soft-spoken Singh as finance minister. Although Singh was not Rao’s first choice – Pranab Mukherjee had been ruled out, and economist I G Patel declined the role – his appointment would prove transformative. 

 

When presenting the Union Budget for 1991-92, Singh opened his speech by paying homage to the late Rajiv Gandhi, assassinated just two months prior, saying, “I dedicate this budget to his inspiring memory… his dream of ushering India into the twenty-first century; his dream of a strong, united, technologically sophisticated but humane India.”

 

In a speech that reverberated through Parliament and beyond, Singh outlined the depth of the crisis and the necessity for bold action. He famously quoted Victor Hugo when he said, "No power on earth can stop an idea whose time has come." "The emergence of India as a major economic power is one such idea,” he added.

 

“India is now wide awake. We shall prevail,” he declared to Parliament.

 

Acknowledging the sacrifices that lay ahead, he warned, “There can be no adjustment without pain. The people must be prepared to make necessary sacrifices to preserve our economic independence and restore the health of our economy.”

 

Over the next few years, Singh introduced structural reforms that liberalised the Indian economy, opening it up to foreign investment and dismantling a web of protectionist policies.

 

His rationale was clear: “After four decades of planning for industrialisation, we have now reached a stage of development where we should welcome, rather than fear, foreign investment… Direct foreign investment would provide access to capital, technology, and markets.”

 

‘In the long run, we are all dead’: Manmohan Singh on demonetisation

Singh’s tenure as prime minister from 2004 to 2014 further cemented his reputation as a leader of quiet strength and vision. From advancing India’s civil nuclear agreement with the United States to fostering economic growth, his contributions were widely acknowledged.

 

However, he was also unafraid to voice criticism when warranted. In 2016, Singh lambasted the demonetisation policy announced by Prime Minister Narendra Modi, calling it a case of “severe mismanagement”.

 

Quoting economist John Maynard Keynes, Singh said, “Those who say it is good in the long run should recall the quote: ‘In the long run, we are all dead.’”

 

“The Prime Minister said to wait for 50 days… but for poor people, even 50 days can be detrimental,” Singh said, adding, “My own view is that GDP growth can fall by 2 per cent, and that is an underestimate… This will hurt agriculture, small industry, and everyone in the unorganised sector.”

 

This prediction was proven correct when the gross domestic product (GDP) for the April-June quarter of 2017-18 fell to a three-year low of 5.7 per cent. It had been 7.1 per cent during the same period of the prior year.

 

‘I will defend your right to say it’: Manmohan Singh during JNU protest

One of the defining moments of Manmohan Singh’s legacy was his invocation of Voltaire during a visit to Jawaharlal Nehru University (JNU) in 2005. Despite facing protests from Left-backed students critical of his economic policies, Singh reaffirmed the essence of democratic principles and the importance of free speech.

 

Former JNU student leader Umar Khalid, who later became a prominent voice in debates about democratic rights, recounted the incident in a post on X (then Twitter) in 2020: “In 2005, Manmohan Singh faced black flags in JNU as a protest against his economic policies. It became a big news. The adminstration immediately sent notices to students. The very next day, PMO intervened and asked the admin not to take any action as the protest was students’ democratic right.”

 

During the unveiling of a statue of former Prime Minister Jawaharlal Nehru on JNU’s campus, Singh addressed a tense audience, saying, “Every member of a university community, if he or she wishes to aspire to be worthy of the university, must accept the truth of Voltaire’s classic statement. Voltaire proclaimed, ‘I may disagree with what you have to say, but I shall defend, to the death, your right to say it.’ That idea must be the cornerstone of a liberal institution.”

 

A lasting legacy

From rescuing the nation during its economic nadir to shaping its rise on the global stage, Manmohan Singh’s legacy is defined by his contributions to India’s economic and democratic foundations.

 

His words from 1991, “We must act fast and act boldly,” remain a reflection of his pragmatic approach to governance and reform.