The era of Manmohan Singh, spanning his tenure as Finance Minister (1991-96) and Prime Minister (2004-2014), is being widely remembered for transformative industrial reforms that redefined corporate India.
As captains of industry mourned the passing of Singh, regarded as the architect of India’s 1991 economic turnaround, they lauded his vision for empowering Indian businesses to compete globally and drive sustained growth.
Under Singh’s leadership, India’s industries underwent a profound transformation. His landmark liberalisation wave in 1991 dismantled the ‘License Raj’, freeing businesses from decades of bureaucratic controls and opening the economy to competition and foreign investments. These reforms integrated Indian industries with global markets and paved the way for modernised, resilient corporate practices, industrialists said in their tributes.
A Trailblazer
Corporate India owes much to Dr Singh’s policies, which laid the foundation for the emergence of multinational Indian firms, one industry leader remarked. Companies like Tata, Infosys and Reliance capitalised on Singh’s reforms to expand globally, turning India into an exporter of goods, services and talent.
The software and IT sectors emerged as global leaders during this era, while pharmaceuticals, automobiles and financial services also saw rapid growth and export orientation toward developed markets. Singh’s policy focus on infrastructure, governance reforms and financial sector liberalisation created an environment conducive to innovation and investment.
Subodh Bhargava, Chairman, Eicher Ltd and former President of Confederation of Indian Industry (CII), said, “Manmohan Singh’s defining contribution was his June 1991 move to abolish Licence Raj. When Licence Raj was abolished, Indian industry became entrepreneurial, strategic and went in for capacity expansion”.
He ensured Empowerment of Indian industry to take ourselves forward, Bhargava told businessline.
N Chandrasekaran, Chairman, Tata Sons, described former Prime Minister Manmohan Singh as one of the stalwarts who envisioned a new, liberalised India that is taking its rightful place in the world.
“Singh will always be remembered for his visionary thinking and deep insights while always being humble and upholding his personal values. His inspiring leadership earned him respect across the world,” Chandrasekaran said.
Narayana Murthy, Founder, Infosys, said Former Prime Minister Dr Manmohan Singh, was a gentleman, a scholar and a value-based politician. His leading the economic reforms, under the guidance of Narasimha Rao, is what laid a strong and durable foundation for the acceleration of India’s economic growth, he said. “Therefore, every Indian should be extremely grateful to this extraordinary individual for enhancing the prosperity of country,” Murthy said.
Transformation of Corporate India
• Global Competitiveness: With the removal of trade barriers, Indian companies were compelled to improve quality, scale operations, and innovate to compete with international firms.
• Diversified Industries: The software and IT sector emerged as global leaders, while auto, pharmaceuticals, and telecom industries became significant contributors to GDP.
• Corporate Governance: Regulatory reforms, such as the SEBI Act and better disclosure norms, enhanced transparency and accountability in corporate operations.
• Emergence of Multinational Indian Firms: Companies like Tata, Infosys, and Reliance expanded globally, making India an exporter of goods, services, and talent.
• Inclusive Growth: MSMEs received a boost through policy incentives, contributing to employment and rural industrialisation.
Key Reforms
Abolition of License Raj
One of Singh’s pivotal reforms in 1991 was abolishing the License Raj, which required industries to seek government approval for setting up and expanding operations. This freed businesses from bureaucratic red tape, fostering entrepreneurship and industrial expansion.
FDI Liberalization
Singh’s policies opened critical sectors like telecom, insurance, and retail to foreign direct investment (FDI), allowing global players to enter the Indian market. This inflow of capital, technology, and expertise elevated industry standards and competitiveness.
Banking and Financial Sector Reforms
A series of banking reforms strengthened financial institutions, improved credit availability, and encouraged private sector participation. This move laid the foundation for the corporate sector’s growth through better access to capital.
Tax Reforms and Corporate Restructuring
Rationalization of tax structures and introduction of VAT reduced distortions and improved compliance, benefiting industries. Singh also facilitated corporate restructuring, mergers, and acquisitions through regulatory easing.
Infrastructure Development
Under Singh’s prime ministership, investments in roads, ports, and power expanded infrastructure, a critical enabler for industrial growth. Initiatives like the Golden Quadrilateral project and the Electricity Act of 2003 addressed bottlenecks.
Chamber Chiefs Say
Sanjay Nayar, President ASSOCHAM, said that the former Prime Minister Manmohan Singh would always be remembered as an architect of economic reforms unleashing a new entrepreneurial energy for Indian businesses, firing global ambitions in them.
Meanwhile, FICCI said in a statement that Singh, who was the architect of India’s economic liberalisation and the father of economic reforms, played a pivotal role in shaping the country’s economic destiny. Under his leadership as Finance Minister and later as Prime Minister, India witnessed unprecedented economic growth and emerged as a global economic powerhouse.
CII Director General Chandrajit Banerjee highlighted that former Prime Minister Manmohan Singh conceptualized India’s economic resurgence with path breaking reforms across all areas of the economy.
Hemant Jain, President, PHDCCI, said former Prime Minister Manmohan Singh revolutionized India’s economic landscape through historic liberalization and rights-based welfare reforms, transforming millions of lives.
(with inputs from Mumbai bureau)
