In December 2004, the year his government took office, Manmohan Singh warned that India's system of subsidies, particularly those covering fuel and energy, was unsustainable. "Today, we are offering subsidies to a wide range of users without a proper analysis of their economic and social rationale," the country's prime minister said.

The following year, in a speech marking the first 12 months in office of the United Progressive Alliance, the Congress party-led ruling coalition, Mr Singh once again railed against "wasteful subsidies". He returned to the theme in 2006, questioning whether such state support was consistent with India's "economic security".