How Manmohan Singh defended landmark 1991 Union budget
New Delhi (PTI): Manmohan Singh, the architect of India's economic reforms, had to literally face a trial-by-fire to ensure widespread acceptance of his path-breaking 1991 Union budget that saw the nation rise from its darkest financial crises.
Singh, the newly-appointed finance minister in the PV Narasimha Rao-led government, did it with great elan -- from facing journalists at a post-budget press conference to irate Congress leaders unable to digest the wide-ranging reforms at the parliamentary party meeting.
Singh's historic reforms not only rescued India from near bankruptcy but also redefined its trajectory as a rising global power.
Singh made an unscheduled appearance at a press conference on July 25, 1991, a day after the presentation of the Union budget, "to ensure that the message of his budget did not get distorted by less-than-enthusiastic officials", Congress leader Jairam Ramesh wrote in his book "To the Brink and Back: India's 1991 Story" that recounts the fast-paced changes that took place after Rao became prime minister in June 1991.
"The finance minister explained his budget -- calling it 'a budget with a human face'. He painstakingly defended the proposals to increase fertiliser, petrol and LPG prices," Ramesh recounted in the book published in 2015.
Ramesh was an aide to Rao during his initial months in office.
Sensing the disquiet in the Congress ranks, Rao called a meeting of the Congress Parliamentary Party (CPP) on August 1, 1991, and decided to allow party MPs to "vent their spleen freely".
"The prime minister stayed away and allowed Manmohan Singh to face the flak on his own," Ramesh wrote, adding that two more meetings took place on August 2 and 3, in which Rao was present throughout.
"In the CPP meetings, the finance minister cut a lonely figure and the prime minister did nothing to alleviate his distress," Ramesh recounted.
Only two MPs -- Mani Shankar Aiyar and Nathuram Mirdha -- backed Singh's budget wholeheartedly.
Aiyar had supported the budget, contending that it conformed to Rajiv Gandhi's beliefs on what needed to be done to stave off the financial crisis.
Bowing to pressure from the party, Singh had agreed to lower the 40 per cent increase in fertiliser prices to 30 per cent but had left the hike in LPG and petrol prices untouched.
The Cabinet Committee on Political Affairs met twice on August 4 and 5, 1991, to decide on the statement Singh would make in the Lok Sabha on August 6.
"The statement dropped the idea of a rollback, which had been demanded over the past few days but now spoke of protecting the interests of small and marginal farmers," Ramesh said in his book.
"Both sides had won. The party had forced a rethink but the fundamentals of what the government wanted -- the decontrol of prices of fertilisers other than urea and an increase in urea prices -- had been preserved," he recounted.
"This was political economy at its constructive best -- a textbook example of how the government and the party can collaborate to create a win-win situation for both," he added in the book.
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Air India resorts to cost-cutting ways amid 'tough times'; layoffs not anticipated
New Delhi/Mumbai (PTI): Hit hard by Pakistan airspace closure and Iran war, Air India has resorted to cost-cutting measures, including holding back annual increments for staff and asking them to cut discretionary spending as well as non-critical expenditures, warning of "tough times".
On Friday, Air India Chief Executive Officer & Managing Director (CEO & MD) Campbell Wilson told the staff it is going to be a "very, very difficult year" if things don't improve on the Middle East front.
A day after the loss-making airline's board discussed various cost-saving steps, Wilson, along with Chief Financial Officer (CFO) Sanjay Sharma and Chief Human Resources Officer (CHRO) Ravindra Kumar GP, addressed the employees during a townhall on Friday where the emphasis on the need to keep a close watch on costs.
With higher jet fuel prices due to the West Asia conflict and airspace curbs, the loss-making airline's expenses have spiralled in recent times and against this backdrop, Sharma also told staffers that FY26 has seen a softening in revenue amid heightened external uncertainties.
Calling for a relentless focus on costs in these tough times, Wilson urged employees to suspend discretionary spending, renegotiate rates where feasible, and defer non-critical expenditures.
"There must be a laser-sharp focus on eliminating wastage and leakages," he said.
Stressing the need to tighten the belt for a while, Wilson sounded optimistic that travel demand would rebound and the industry would continue on its upward path.
CHRO Ravindra Kumar told staff that the airline will proceed with variable pay for the last financial year and continue with planned promotions while noting that annual increments will be deferred by at least one quarter.
"We don't anticipate layoffs," he said.
At the airline's board meeting on Thursday, various cost-saving steps, including likely furloughs, were discussed. The Tata Group-owned airline has around 24,000 employees.
Generally, furlough refers to sending staff on unpaid leaves by companies during a tough financial situation.
During the townhall, CFO Sanjay Sharma said while strong revenue growth and fleet expansion drove financial momentum through FY25, FY26 has seen a softening in revenue amid heightened external uncertainties.
Air India has seen around 40 per cent CAGR (Compounded Annual Growth Rate) in revenue between 2022 and 2025, he added.
The airline was acquired by the Tata Group from the government in January 2022.
The Air India CEO mentioned the external challenges being facing the aviation industry as a whole, including the continued closure of Pakistan airspace that is expected to persist for the foreseeable future and geopolitical conflicts leading to disruptions and airspace closures across West Asia.
Wilson, who is set to step down later this year, also flagged a sharp depreciation of the rupee and a 2.5-3 times increase in jet fuel prices, and added that these factors have adversely affected travel sentiment and consumer confidence, as per the sources.
If the Strait of Hormuz opens, oil prices fall and consumer as well as business confidence come back, there is a decent chance of a solid recovery, Wilson said, adding that unless those circumstances happen, it was going to be "a very, very difficult year".
"I feel somewhat responsible that we ended up with probably the biggest surprise of the year in the external environment which was a full-scale war in our neighbouring region in the Gulf. That has had a huge impact on airspace," he said.
For Air India, Wilson said the situation is compounded by the fact that the airline cannot fly over the neighbouring country and has to take a much longer routing for any west-bound destination.
"Every airline is reporting that they are under some sort of financial pressure as a result of higher fuel prices and economic uncertainty. So, it is unfortunately not a great environment to be running an airline," the Air India CEO said.
The Air India Group -- Air India and Air India Express -- is projected to have incurred more than Rs 22,000 crore loss in the financial year ended March 2026.
At the townhall, Wilson also highlighted various initiatives, including completion of the retrofit of its legacy narrow-body aircraft and rapid network optimisation to redeploy capacity more efficiently.
