Dr. Manmohan Singh: The Architect of Modern Indian Economy and MSMEs

Dr. Manmohan Singh left us, with this sad news also bought an end of an era in Indian politics and economics. Widely regarded as the architect of India's economic liberalization, Dr. Singh's contributions to the nation are profound, spanning decades of public service and policy reforms. This article is an attempt from SMEStreet to pay homage to this great leader  for his legacy, particularly for his pivotal role in transforming the Indian economy and empowering Micro, Small, and Medium Enterprises (MSMEs).

A towering figure in India’s modern history, Dr. Singh was not only a statesman but also an economist who transformed the trajectory of the nation’s development. As the architect of India’s economic liberalization in 1991 and a steadfast advocate for inclusive growth during his tenure as Prime Minister, his legacy is a testament to visionary leadership and unwavering dedication to the welfare of the nation.

The Architect of Economic Reforms

Dr. Manmohan Singh, India's 13th Prime Minister (2004-2014), was a visionary economist long before he stepped into the political limelight. His tenure as the Finance Minister in 1991 marked a watershed moment in India’s economic history. Faced with a severe balance-of-payments crisis, Dr. Singh spearheaded a series of economic reforms under the leadership of then Prime Minister P.V. Narasimha Rao. These reforms included:

• Liberalization: Removing licensing requirements for various industries, which paved the way for greater competition and innovation.

• Privatization: Reducing government control in key industries, encouraging private sector participation.

• Globalization: Opening India to foreign investment and trade, integrating the nation into the global economy.

These measures rejuvenated the Indian economy, setting it on a trajectory of sustained growth. The GDP growth rate, which hovered around 1-2% (referred to as the "Hindu rate of growth"), leaped to over 6% in the following decade.

Advocate for MSMEs

Throughout his career, Dr. Singh recognized the vital role of MSMEs in the Indian economy. Contributing nearly 30% to India’s GDP and employing over 110 million people, MSMEs form the backbone of the nation’s industrial landscape. His tenure as Prime Minister saw several initiatives aimed at bolstering this sector:

Financial Inclusion and Credit Access

Dr. Singh’s government introduced schemes such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which provided collateral-free credit to MSMEs. This initiative empowered thousands of small business owners, enabling them to expand operations and create jobs.

Skill Development and Technology Upgradation

Under Dr. Singh’s leadership, programs like the National Manufacturing Competitiveness Programme (NMCP) were launched to help MSMEs upgrade technology, enhance productivity, and improve their global competitiveness. He also emphasized skill development through initiatives like the Skill Development Mission to equip the workforce with industry-relevant skills.

Focus on Rural MSMEs

Dr. Singh’s policies prioritized rural entrepreneurship, encouraging self-reliance through initiatives like the Rural Employment Generation Programme (REGP) and the Prime Minister’s Employment Generation Programme (PMEGP). These schemes provided financial and infrastructural support to rural entrepreneurs, fostering balanced regional development.

Legacy of Pragmatism and Empathy

Dr. Singh was more than just an economist; he was a leader with a deep sense of empathy. His policies were designed not only to stimulate growth but also to ensure equitable distribution of wealth. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), launched during his tenure, is a testament to his commitment to inclusive development.

In his speeches, Dr. Singh often highlighted the need for sustainable and inclusive growth, a vision that resonated in his policies for MSMEs. He believed that empowering small businesses was key to reducing unemployment and poverty in India.

Dr. Manmohan Singh’s demise is a profound loss for India and the world. His intellectual acumen, coupled with a genuine concern for the welfare of the masses, made him a statesman par excellence. As India continues to navigate its economic journey, his reforms and vision for MSMEs remain a guiding light.

In remembering Dr. Singh, we honor not only the man but also the ideals of resilience, pragmatism, and compassion that he embodied. His legacy will continue to inspire generations to strive for an India that is economically strong, socially equitable, and globally respected.