Dr Manmohan Singh tenure as India’s Finance Minister from 1991 to 1996 was eventful
Sambeet Dash
An episode from the year 1991 might ring a bell. This is how Subramanian Swamy, a man who has been in almost all parties and nowadays a BJP man turned into a BJP critic, then a Commerce Minister in Chandra Sekhar’s government, had this conversation with the USA Ambassador to India. This was during a very crucial time in early 1991 when the American-led coalition forces were fighting the Iraq War and the Indian economy was totally in shambles. The American Ambassador asked Dr. Swamy what India needed in exchange for a refueling facility provided on Indian soil to the Gulf-bound US planes fighting the Iraq war.
Here is how the conversation was reported. US Ambassador – “What do you want in return”? Dr. Swamy replied – “We want $2 billion because we are on the verge of bankruptcy”. The Ambassador asked, “You want it from the United States”? Dr. Swamy responded – “No, from the International Monetary Fund (IMF) and without any condition attached”.
The Ambassador went on, “How can I get your money from the IMF”? Dr. Swamy replied, “You have 87 percent voting rights in IMF. So, if you want landing rights, then by Monday I want $2 billion”. The American played hard – “Today it is already Friday”. Said Swamy, “In Washington DC it is still Thursday night. I know you can pull it off.” (And unlike many who believe that world leaders get ecstatic by looking at Mahaprabhu’s white beard, we know in international matters it is always a give and take relationship and everyone plays hard. It invariably needs some negotiation and hard bargaining before a deal is reached).
So the US gave India $2 billion and they were given the landing rights by India. We changed our non-alignment policy overnight. 2 billion dollars, even adjusted to inflation is not a gargantuan amount by today’s standard, now considering India a USD 4 trillion economy and $650 billion-plus in its Forex reserve. But it was no laughing matter then when India’s Balance of Payment position was extremely precarious and its coffer was on the verge of depletion. India with a few hundred million USD in its reserves and its gold mortgaged in a London Bank was staring at a nightmare scenario of economic catastrophe.
Long rule by the Congress Party and its disastrous, leftist-socialist economy policy followed by years of classic Hindu rate of economic growth took us to the doorstep of impending bankruptcy. Yet it took another Congressman, incidentally not from the Nehru-Gandhi family to fix it. A huge credit for this transformation we are seeing 33 years down the road goes to a man, who after almost retiring from public life became India’s Finance Minister by fluke and a two-term Prime Minister for 10 years. He is no other than our erudite, educated, qualified economist and the first Sikh Prime Minister of India Dr. Manmohan Singh who is no more. He passed away earlier today at the age of 92.
Dr. Singh was a gentleman whose integrity was beyond question. Never a politician, he was liked by everyone. He was India’s Finance Minister for 5 years and prime minister for 10 years – both rare achievements by a person who wasn’t a politician. Khushwant Singh once mentioned that Dr. Singh once ran for Lok Sabha from the South Delhi constituency and borrowed some money from the eminent writer. Needless to say, he lost the election, and soon after he returned the money to Khushwant Singh. Such a gesture is very rare these days when money taken in is never returned. No wonder such a person lost the election and it says a lot about the people we elect. Manmohan Singh never got elected from Lok Sabha and had to get elected via backdoor to Rajya Sabha to be able to continue in office and contribute to the nation.
Dr. Singh’s tenure as India’s Finance Minister from 1991 to 1996 was eventful. He opened up the Indian economy from the stranglehold of Redtapism, Permission, and License Raj, devalued the moribund Indian Rupees to make it more competitive and encourage exports, cut tariffs, and improve India’s substandard infrastructure. India’s economy responded positively unshackling itself from its classic Hindu rate of growth. Its foreign exchange coffer increased to a healthy level. It all happened sans any fanfare and fake jingoism surrounding it.
Yet his tenure as India’s Prime Minister between 2004 and 2014 was a mixed back. Though India’s economic growth continued, there was visible corruption by people around him, although his integrity was impeccable. He watched silently and helplessly as there was policy paralysis everywhere as he was seen as a puppet of the all-powerful Congress Chief Sonia Gandhi, followed by her son Rahul. Internationally, Pakistan continued to make one terror attack after another inside India perceiving him as a weak person and the leader of a weak state.
Regardless of all these, India’s growth juggernaut chugged ahead contrary to many who believe everything was in the doldrums before 2014 and the ‘Satya Yuga’ (golden era) arrived in India the same year after the arrival of BJP and Modi.
(The author is an Odia technocrat living in the USA. Views expressed are personal)
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