Manmohan Singh: Before the Finance Ministry
Manmohan Singh’s ascent to the position of Finance Minister in 1991 was a pivotal moment in Indian history, but his journey before that point reveals a career dedicated to economics and public service. It was a path carefully paved with academic rigor and practical experience, laying the foundation for the reforms he would later champion.
Born in Gah, Punjab, British India (present-day Pakistan) in 1932, Singh’s early life was marked by the socio-economic hardships prevalent during that era. He migrated to India after the Partition, a formative experience that instilled in him a deep understanding of poverty and displacement. He pursued his education with exceptional dedication, earning a Bachelor’s and Master’s degree in Economics from Panjab University, followed by another Master’s from Cambridge University and a D.Phil. in Economics from Oxford University.
His academic prowess led him to a career in teaching and research. He served as a lecturer at Panjab University and later as a professor at the Delhi School of Economics. These positions provided him with a platform to delve into the intricacies of economic theory and policy, shaping his intellectual framework and honing his analytical skills. His academic work focused particularly on India’s trade policies and the challenges of development in a mixed economy.
Singh’s foray into government service began in the early 1970s. He served as an Economic Advisor to the Ministry of Foreign Trade, and subsequently as Chief Economic Advisor to the Ministry of Finance. These roles provided him with invaluable insights into the practical application of economic principles within the Indian context. He witnessed firsthand the complexities of policymaking, the constraints of bureaucratic processes, and the challenges of balancing competing interests.
A significant part of his pre-finance ministry career was spent at the Reserve Bank of India (RBI) and the Planning Commission. He served as the Governor of the RBI from 1982 to 1985, a period marked by cautious monetary policy and efforts to manage inflation. He then transitioned to the Planning Commission, ultimately serving as its Deputy Chairman from 1985 to 1990. In this capacity, he played a key role in formulating India’s economic plans and advocating for policy changes aimed at accelerating growth and reducing poverty. He was a strong advocate for liberalization, but within a framework that protected the interests of the poor and vulnerable.
Before 1991, Manmohan Singh was known as a technocrat and an economist with a deep understanding of Indian economic realities and a commitment to inclusive growth. While he wasn’t a political heavyweight, his expertise and integrity earned him respect within government circles. This background proved crucial when Prime Minister P.V. Narasimha Rao chose him as Finance Minister, tasking him with steering India through a severe economic crisis. The foundations laid in his earlier roles were instrumental in enabling him to navigate the turbulent waters of economic reform and transform India’s economic landscape.