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NEW DELHI: It was on July 24 in 1991 that Dr Manmohan Singh, the architect of India’s economic reforms, presented his first budget which was to mark the country’s break with past policies.
As Singh took oath, India was on the brink of the economic precipice as there were only $1 billion in government reserves to last only a few weeks.
Singh knew India had reached a stage where there were no choices but to break with the past.
Quoting Victor Hugo while presenting his first budget in Parliament, Dr Singh said, “ `No power on earth can stop an idea whose time has come.’ 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.’’
Twenty-four years since that speech, India indeed has become a major economic power and emerged as the fastest growing economy in the world.
Back then, Singh’s appointment as his finance minister was a big surprise sprung by Prime Minister Narasimha Rao.
But more than anybody else, it was Manmohan Singh who was utterly surprised when he got the news out of the blue that he will be India’s next finance minister.
The story goes like this that Manmohan Singh was fast asleep when he was woken up by PC Alexander, Principal Secretary to Narasimha Rao, to give him the good news.
Now, why did Rao choose Manmohan Singh over seasoned economist like former Reserve Bank Governor I.G.Patel and others? Of course, Singh had all the credentials as he had served in all top economic positions in the Government of India as well as chairman of the South-South Commission in Geneva.
But probably what clinched Rao’s decision in Manmohan Singh’s favour was that he was a mild-mannered, honest technocrat.
There was also speculation that Narasimha Rao appointed a Sikh as his finance minister because he (Rao) felt guilty for the 1984 anti-Sikh riots. Rao was the home minister of India when Prime Minister Indira Gandhi was assassinated in 1984 and anti-Sikh riots broke out. Rao was accused of inaction and not calling in the army soon to stop the mobs.
Whatever may be Rao’s reasons to appoint Manmohan Singh, their partnership pulled India back from the economic brink.
It was 24/7 in 1991 when India ushered in reforms and the country has grown 24/7 since then.
