PM Manmohan Singh goes all-in

A tumultuous week led some to wonder whether the UPA-II was near its end. But prime minister (PM) Manmohan Singh’s televised address to the nation last night sought to seize control of the political narrative. It would have surprised those who believe the PM to be apolitical.

Clearly, he has learnt much from his mentor PV Narsimha Rao. Indeed, he repeatedly invoked the 1991 reforms while defending the decisions on the diesel price hike, the limiting of LPG subsidies and FDI in retail. It was disingenuous, for the 1991 reforms were a paradigm shift from the mixed economy independent India had adopted; the recent decisions were sectoral and intended, as the PM said, to boost investor confidence in India. He argued not taking these decisions would have resulted in a situation as dire as that in 1991, when India had to pledge its gold reserves.

He also raised the bogey of our becoming like Europe’s failing economies. Also, he linked opposition to the latest reforms to those who had opposed the 1991 reforms. It was shrewd, since most viewers think their lives have improved since 1991; and who can argue against further improvement? Such counterfactuals cannot be proved of course.

“Money does not grow on trees,” he said, sternly, decrying the opposition’s attempt to mislead voters with scare tactics and falsehoods. Strong words indeed, but this is a card that can only be played once. The PM has staked his political capital, depleted as it may be by the 2G and coal allocation scams, on these reforms. Just the fact he has decided to lead from the front is heartening, and comes not a moment too soon.