The Manmohan Singh Effect: Revolutionizing India’s Startup and Innovation Ecosystem
Remembering Manmohan Singh | When India stood at the crossroads of economic uncertainty in 1991, it was a quiet, unassuming statesman who took bold steps to redefine the nation’s trajectory. Dr. Manmohan Singh’s visionary leadership as Finance Minister, and later as Prime Minister, planted the seeds for India’s thriving startup ecosystem. His economic reforms dismantled decades-old barriers, empowered entrepreneurs, and set the stage for a digital revolution that transformed the country into a global innovation hub. Through a series of groundbreaking policies and forward-thinking initiatives, Singh unlocked the potential of a new India, fostering an environment where ideas could flourish and startups could thrive.
Let’s take a closer look at how Dr. Manmohan Singh laid the foundation for India’s startup revolution and shaped its entrepreneurial landscape through his visionary policies and initiatives.
- 1991 Economic Reforms:
- Introduced liberalisation, privatisation, and globalisation (LPG) policies, ending the Licence Raj.
- India’s foreign exchange reserves in 1991 were less than Rs 2,500 Cr, enough for only two weeks of imports.
- Economic Growth:
- The reforms encouraged the growth of the services sector, which produced many backers and talent for India’s startup ecosystem.
- Startup Ecosystem Growth (2004–2014):
- During Singh’s tenure as Prime Minister, India received $90 Bn in venture capital and private equity financing across 4,000 companies.
- Infosys’s Impact:
- 75+ former Infosys employees contributed to over 70 new-age tech ventures, benefiting from the economic policies initiated in 1991. This list includes Cars24, Magicpin, Urban Company, PinClick, Data(Meet) & more.
- Digital Revolution Contributions:
- In 2008, Nandan Nilekani proposed the idea of a unique ID (UID) for Indians. Singh supported this idea, leading to the establishment of the UIDAI project.
- By 2010, UIDAI had rolled out its first API, and by 2012, eKYC functionality was operational.
- By 2014, 1.5 Lakh out of 3.5 Lakh targeted village panchayats were connected with broadband.
- Policy Reforms Enabling Investments:
- FDI limit in the insurance sector was increased from 26% to 49%.
- Multi-brand retail was opened to foreign direct investment with a 51% cap in 2012.
- National Electric Mobility Mission Plan (NEMMP):
- Introduced in 2013 to promote hybrid and electric vehicles, laying the groundwork for future EV-related policies.
(Information sourced from the internet through various channels)
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