Manmohanomics: Understanding Manmohan Singh’s policies through his quotes

“No power on earth can stop an idea whose time has come,” is how Manmohan Singh, then Finance Minister of India, concluded his landmark 1991 Budget speech. “I suggest to this august House that the emergence of India as a major economic power in the world happens to be one such idea. Let the whole world hear it loud and clear. India is now wide awake. We shall prevail. We shall overcome.”

These words, quoted from the French poet and novelist Victor Hugo, marked an epochal moment in India’s economic march, ushering in a new era of liberalisation and reforms that would transform the country into one of the world’s fastest-growing economies.

India is mourning the loss of the reformer, former PM Manmohan Singh, who passed away on Thursday, at the age of 92.

Manmohan Singh’s many tenures, spanning roles as Economic Advisor in the Commerce Ministry, Chief Economic Advisor, Governor of the Reserve Bank of India, Deputy Chairman of the Planning Commission, Finance Minister, and eventually Prime Minister, were marked by his insightful and often quotable observations on economics and governance.

Here are five notable quotes that reflect his vision and commitment to economic reforms and inclusive growth.

MANMOHAN SINGH ON EMBRACING CAPITAL AND TECH-DRIVEN OPEN MARKET ECONOMY

“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,” Singh explained in his Budget speech, after PM PV Narasimha Rao brought a new industrial policy that made foreign direct investment (FDI) of up to 51% of foreign equity possible in Indian companies.

The perks of the openness that Manmohan Singh spoke about were soon evident in the inflow of foreign capital, technological advancements, and the integration of Indian industries into global markets.

In an interview with American journalist Charlie Rose, Manmohan Singh described how he became a capitalist despite his humble beginnings.

According to Neerja Chowdhury’s book, How Prime Ministers Decide, Rose asked why Singh hadn’t opted for socialism, a planned economy and statist measures to address inequality in the country.

Singh said he “still felt that equity is something which we should worry about”, adding, “I do believe that capitalism has shown a great deal of dynamism.”

MANMOHAN SINGH ON HUNGER ERADICATION AND NATION’S GROWTH

“I have said earlier on a number of occasions and I repeat that the problem of malnutrition is a matter of national shame. Despite impressive growth in our GDP, the level of under-nutrition in the country is unacceptably high. There are nearly 16 crore children in the country below the age of 6 years. In the years to come, these children will join our work-force as scientists, as farmers, as teachers, as data operators, as artisans, as service providers. Several of them will become social workers like many of you in this hall. The health of our economy and society lies in the health of this generation. We cannot hope for a healthy future for our country with a large number of malnourished children,” said Manmohan Singh, who dubbed hunger as a “national shame” at the release of the HUNGaMA (Hunger and Malnutrition) Report of 2011.

Singh understood very well that addressing malnutrition was not just a moral imperative but also an economic necessity, as the health and productivity of future generations were crucial for sustaining India’s growth and development.

Two years after the speech on the HUNGaMA report, PM Manmohan Singh played a key role in the passage of the National Food Security Act (NFSA) in 2013. It aimed to provide subsidised food grains to two-thirds of India’s population, addressing chronic hunger and malnutrition. His government prioritised food security as a fundamental right, and strengthened welfare schemes like the Public Distribution System and the Mid-Day Meal Scheme.

INDIA’S 7.9% GROWTH AFTER 2008 GLOBAL RECESSION, MANMOHAN SINGH’S POLICY MASTERCLASS

“In devising a reform agenda, one must bear the wise saying of John Maynard Keynes regarding the economically damaging role of excessive speculative activity. To quote Keynes: ‘Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation. When the capital development of a country becomes a byproduct of the activities of a casino, the job is likely to be ill-done’,” said Manmohan Singh on 2008’s financial crisis at the Asia–Europe Meeting Summit in Beijing.

PM Manmohan Singh saw the 2008 financial crisis as a warning about the dangers of speculation taking over real economic activities. He believed that investments should focus on building the economy rather than being driven by risky, short-term bets. Singh called for reforms to make the financial system more stable and to ensure it supports long-term growth and development.

Under Singh’s leadership, India navigated the 2008 global recession and the bursting of the infrastructure bubble. Due to the government’s effective policies and timely interventions, India’s GDP achieved an impressive growth rate of 7.9% in 2009.

MANMOHAN SINGH SLAMMED 2016 DEMONETISATION AS “MONUMENTAL MISMANAGEMENT”

“Already 60 or 65 people have lost their lives, possibly more. This move will weaken and erode the people’s confidence in our currency and banking system,” said Manmohan Singh in Rajya Sabha after demonetisation of 2016, with Prime Minister Narendra Modi sitting on the treasury benches. “In my opinion, demonetisation will hurt agricultural growth, small industries and all those who are in the informal sectors. I urge the prime minister to find practical and pragmatic ways and means to end the distress of people.”

“It is no good that every day, the banking system modifies rules and conditions. This reflects poorly on the office of the PM, finance ministry and the Reserve Bank of India. I am very sorry that the RBI has been exposed to this criticism,” added Singh calling the execution of demonetisation “a monumental mismanagement”.

Singh, who viewed the 2016 demonetisation as a poorly conceived and executed policy that caused distress to the public, also highlighted the failure of anticipating challenges. Drawing on his experience as a former Prime Minister, Finance Minister, and RBI Governor, Singh expressed disappointment at the diminished credibility of these institutions.

HOW MANMOHAN SINGH RATED HIS TENURE ON SCALE OF 10

“It is for you to judge. As far as I am concerned, I feel I have done reasonably well. The growth process that we sustained in the last 10 years despite the global financial crisis, despite the Euro-zone crisis, and considering also what is happening in other emerging countries like Brazil, like South Africa, like South Africa, like Indonesia, I don’t think ours is a story which can be described as non-successful or eventful,” said Singh as he was asked to rate his PM tenure on a scale of 10 in 2014.

Manmohan Singh viewed India’s economy during his tenure as a resilient success story, particularly given the challenges. He took pride in sustaining robust growth over a decade, comparing India’s performance favourably to other emerging economies like Brazil, South Africa, and Indonesia.

To conclude, Manmohan Singh’s legacy, who served India and its economy for decades, also embodies humility and a commitment to democratic principles, as reflected in his quote: “The greatness of democracy is that we are all birds of passage! We are here today, gone tomorrow! But in the brief time that the people of India entrust us with this responsibility, it is our duty to be honest and sincere in the discharge of these responsibilities”.