Indian Stock Market Thrives Under Manmohan Singh’s Leadership: A Legacy of Investor Prosperity

"Indian Stock Market Thrives Under Manmohan Singh's Leadership: A Legacy of Investor Prosperity"
Economic reforms and stock market boom define his legacy.
Former Prime Minister Dr. Manmohan Singh, widely regarded as the architect of India’s economic liberalisation, passed away in Delhi at the age of 92, leaving behind a transformative legacy that reshaped India’s economy and stock markets. His policies, implemented during a time of financial crisis in the early 1990s, catapulted India to the global stage and laid the foundation for unprecedented economic growth.
The Era of Economic Liberalisation
In 1991, Dr. Singh, as Finance Minister, introduced historic reforms during a period of deep financial distress when India was on the brink of economic collapse. Foreign reserves were nearly depleted, and the country was facing a dire crisis. His policies, which included the abolition of the Licence Raj, reducing import tariffs, attracting foreign investment and introducing fiscal discipline, dismantled decades of restrictive economic controls and opened India’s economy to the global market.
These measures not only revived the Indian economy but also paved the way for sustained growth, transforming India into a competitive and globally integrated economic powerhouse.
The Stock Market Revolution
The liberalisation reforms had a direct and profound impact on the Indian stock market. In 1991, the Bombay Stock Exchange Sensex was trading at approximately 1,000 points. Over three decades, the index has soared past the 78,000 mark, delivering exponential returns to investors. This period saw wealth creation on an unprecedented scale, with many investors benefiting from the robust growth of Indian companies.
Prime Ministerial Legacy
Dr. Singh’s contributions extended beyond his tenure as Finance Minister. As Prime Minister from 2004 to 2014, he presided over an era of robust economic expansion, with GDP growing at an average annual rate of 6.9%. His government focused on infrastructure development, policy stability, and attracting foreign investment, which boosted investor confidence and spurred growth in key sectors like IT, banking, and manufacturing.
During this period, India emerged as an economic leader, with Indian companies becoming global players and foreign institutional investors pouring capital into the country.
A Lasting Impact
Today, India ranks fifth globally in GDP, a testament to the solid foundation laid by Dr. Singh’s policies. His vision not only prevented economic collapse in the 1990s but also set the stage for decades of sustained growth and wealth creation.
The stock market’s meteoric rise, from 1,000 points in 1991 to over 78,000 in 2024, exemplifies his transformative impact. Investors who stayed the course during this period have witnessed life-changing returns, solidifying Dr. Singh’s legacy as a champion of economic reform and growth.
Dr. Singh’s passing marks the end of an era, but his contributions to India’s economic journey will remain etched in history.