From licence-permit raj to globalisation: Economists reflect on Manmohan Singh’s transformational legacy

Former PM Manmohan Singh

Hailing Manmohan Singh, former Prime Minister of India and architect of India’s 1991 economic reforms, as a trailblazer who reshaped the nation’s economic trajectory, economists and policymakers said that Singh's opening up of the Indian economy and dismantling the licence-permit raj continues to inspire admiration for his transformative vision.

“Manmohan Singh took the Indian economy from darkness to light,” M Govinda Rao, Director of the National Institute of Public Finance and Policy (NIPFP) told Moneycontrol. “The opening up of the economy and getting rid of the licence-permit raj in a politically difficult environment was transformational. I had the privilege of working for his Economic Advisory Council. He was a giant scholar and yet, a gentle and humble human being. He was an architect of modern India, and the world will miss him sorely,” he added.

The abolition of the licence-permit raj, a system that curtailed economic growth through bureaucratic red tape, is widely regarded as one of Singh’s most significant achievements. His reforms paved the way for a market-oriented economy, encouraging private enterprise and foreign investment.

Singh’s tenure as Finance Minister in 1991 is particularly noted for bold economic reforms during a period of acute financial crisis. His vision for a liberalised and globally integrated Indian economy laid the foundation for sustained growth over the following decades.

Lekha Chakraborty, Professor at NIPFP, emphasised Singh’s role in India’s globalisation. “Manmohan Singh is a trailblazer with regard to India's economic reforms. What India is today is because of him. His emphasis on globalisation helped the government introduce new industrial policies,” she said.

She highlighted Singh’s focus on the government being the “employer of last resort,” which helped drive economic growth and job creation, and set the stage for inclusive development.

Recollecting his early days as an academic, P K Mishra, Principal Secretary to Prime Minister Narendra Modi shared his experience of being taught by Singh. “My memories of Manmohan Singh date back to the time when he was teaching at the Delhi School of Economics. I was in my MA first year. Seeing him among the stalwart professors of that era was reassuring for a student like me, having come from Sambalpur district in west Odisha,” he said. Singh, too, had grown up in small towns.

Mishra recounted Singh’s ability to demystify complex topics in international trade, making learning accessible and enjoyable. “He was extremely unassuming and low-profile,” Mishra noted, adding that this humility remained unchanged even during Singh’s tenure as Prime Minister.

His humility and scholarship left an indelible mark on all who interacted with him. “Whenever I met him, I found the same simplicity, sincerity, and humility in his demeanour,” Mishra added.

The government on December 26 announced a seven-day national mourning following the death of the former Prime Minister at the age of 92.