Economic policy
Following the advice of International Monetary Fund in 1991, Singh as Finance Minister,
freed India from the Licence Raj, source of slow economic growth and corruption in the Indian economy
for decades. He liberalized the Indian economy, allowing it to speed up development dramatically. During his
term as Prime Minister, Singh continued to encourage growth in the Indian market, enjoying widespread success
in these matters. Singh, along with the former Finance Minister, P. Chidambaram, have presided over a period
where the Indian economy has grown with an 8–9% economic growth rate. In 2007, India achieved its highest GDP
growth rate of 9% and became the second fastest growing major economy in the world.
Singh is now a strong supporter of globalization, seeing India's immense labor capacity as a
path to delivering Indian goods in a worldwide market and eventually relieving large-scale poverty.
Singh's government has continued the Golden Quadrilateral and the highway modernisation program that was
initiated by Vajpayee's government. Singh has also been working on reforming the banking and financial
sectors, as well as public sector companies. The Finance ministry has been working towards relieving farmers
of their debt and has been working towards pro-industry policies. In 2005, Singh's government introduced
the value added tax, replacing sales tax. In 2007 and early 2008, the global problem of inflation impacted
India.
Healthcare and education
In 2005, Prime Minister Singh and his government's health ministry started the National Rural
Health Mission, which has mobilised half a million community health workers. This rural health
initiative was praised by the American economist Jeffrey Sachs.
In 2006, his Government implemented the proposal to reserve 27% of seats in All India Institute of
Medical Studies (AIIMS), Indian Institutes of Technology (IITs), the Indian Institutes of Management (IIMs)
and other central institutions of higher education for Other Backward Classes which led to 2006 Indian
anti-reservation protests.
Singh has announced that eight more Indian Institutes of Technology will be opened in the states of
Andhra Pradesh, Bihar, Gujarat, Orissa, Punjab, Madhya Pradesh, Rajasthan and Himachal Pradesh. The Singh
government has also continued the Sarva Shiksha Abhiyan programme, begun by his predecessor, Mr. Vajpayee.
The programme has included the introduction and improvement of mid-day meals and the opening of schools all
over India, especially in rural areas, to fight illiteracy.
Security and Home Affairs
His government has been instrumental in strengthening anti-terror laws with amendments to Unlawful Activities
(Prevention) Act (UAPA), where most of provisions of POTA were reincorporated,critics however cite that the
amendments make the act equally draconian. National Investigation Agency (India) (NIA) was also created soon after
the Nov 2008 Mumbai terror attacks as need for a central agency to combat terrorism was realised. Also Unique
Identification Authority of India was established in February 2009, an agency responsible for implementing the
envisioned Multipurpose National Identity Card with the objective of increasing national security and facilitating
e-governance. His government has been criticized by some human rights organizations,that these measures
could help establish a police state.
His government has also been criticized for not being able to reduce the Naxal terrorism that is
menacing rural areas in Eastern and Central India. Singh's government has, however, extended the ban on the radical
Islamic terror group Student's Islamic Movement of India (SIMI).
Singh's administration initiated a massive reconstruction effort in Kashmir to stabilise the region but
after some period of success, insurgent infiltration and terrorism in Kashmir has increased since 2009.
However, the Singh administration has been successful in reducing terrorism in Northeast India.
15th Lok Sabha
India held general elections to the 15th Lok Sabha in five phases between 16 April 2009 and 13
May 2009. The results of the election were announced on 16 May 2009.[44] Strong showing in Andhra Pradesh,
Rajasthan, Maharashtra, Tamil Nadu, Kerala, West Bengal and Uttar Pradesh helped the United Progressive Alliance
(UPA) form the new government under the incumbent Singh, who became the first prime minister since Jawaharlal
Nehru in 1962 to win re-election after completing a full five-year term.
The Congress and its allies were able to put together a comfortable majority with support from 322 members
out of 543 members of the House. These included those of the UPA and the external support from the Bahujan Samaj
Party (BSP), Samajwadi Party (SP), Janata Dal (Secular) (JD(S)), Rashtriya Janata Dal (RJD) and other minor
parties.
On 22 May 2009, Manmohan Singh was sworn in as the Prime Minister during a ceremony held at Rashtrapati Bhavan.
The 2009 Indian general election was the largest democratic election in the world held to date, with an eligible
electorate of 714 million.
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