As I write this article on my Macbook, sipping on a Pepsi, with a Blackberry beeping by my side and a pair of Levis thrown into the laundry bag, I realize how much I have to thank Manmohan Singh for.
For before he brought about those face-changing economic reforms in India, almost exactly two decades ago, there was no Coca Cola or Pepsi. For a Levis or electronics manufactured outside of India, I would have had to request my Uncle in the US to get those on his next trip to India, of course at the cost of hefty custom duties.
The 1991 reforms truly changed the Indian economic landscape, opening it to the world by easing import restrictions and tariffs. Additionally, bureaucracy was greatly reduced and the License Raj done away by introducing competitiveness through the private sector.
Truly, the Indian growth story since 1991 is impressive if not remarkable. From a forex reserve holding accounting for less than 2 weeks of imports, we are today the country the 7th highest accumulation of forex reserves in the world. In terms of GDP (PPP terms) we have moved up 5 places to being the 4th in the world and have seen exports as a percentage of GDP more than treble. With double-digit GDP growth rates expected going forward, India is touted as the next economic superpower.
Of course, much more remains to be done before we do actually attain that super power status. Many issues are to be addressed-more than 40% of out population lives on less than $1 per day, corruption is rampant, education is far from universal and the rest.
However, even as we do work on these issues, we must take this moment to stop and celebrate our success in these twenty years. And yes, as we raise the toast, how can we forget the man who got it all going? Thank you Mr. Singh!
Not to forget Narasimha Rao who had the political audacity to back such an tetchy issue as liberalisation!
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ReplyDeleteTrue that the man did usher in the economic reforms in the country..but can we deny that in the current government, Mr.PM seems to be quite ineffective and almost helpless...with scamps tumbling down like clothes from a laundry basket, and corruption being at an all time high...we might raise a toast out of a Johnnie Walker, but our own legal frameworks seem to be now in scrambles...its more a reason to worry, I think...
ReplyDelete@ Nallasivan: Yup, agreed!
ReplyDelete@Yash: The article looks at Manmohan Singh purely as the Finance Minister in 1991, who spearheaded the reforms. As political leader in India at present, he may have his drawbacks, but that should not discount his achievements then!
Very well -written!
ReplyDeleteNot to forget, that any association with the world outside India at that time was considered as liaisoning with British. Even though India was entrenched in a severe economic crisis, the opposition still labelled the LPG move as one which involved bowing before the West and making the mistake of trusting them yet again. In such a scenario, hats off to the then FM, Manmohan Singh, for putting his weight behind these risky economic reforms!
Thanks Arshdeep!
ReplyDeleteVery true. These measures were a risk politically so Mr. Singh and Narasimha Rao deserve adequate credit for carrying them through!