P.V. Narasimha Rao’s tenure as Prime Minister from 1991 to 1996 was nothing short of transformative. At a time when India was teetering on the edge of an economic abyss—with foreign exchange reserves barely covering two weeks of imports—he stepped in with quiet resolve and a vision that would redefine the nation’s trajectory.
Under his leadership, and with Dr. Manmohan Singh as Finance Minister, India launched the New Economic Policy of 1991, which dismantled the License Raj, liberalized trade, encouraged foreign investment, and ushered in privatization. These reforms weren’t just economic—they were a cultural shift from decades of protectionism to a more open, globally integrated India.
Rao also recalibrated India’s foreign policy. He normalized relations with Israel, a bold move at the time, and initiated the Look East Policy, recognizing the strategic and economic importance of Southeast Asia. Despite leading a minority government, he managed to maintain political stability and push through sweeping reforms—an achievement many thought impossible.
Long before he became the architect of modern India’s economic reforms, he was a young revolutionary deeply involved in the freedom struggle against both British colonial rule and the autocratic Nizam of Hyderabad.
As a student at Osmania University, Rao was arrested for hoisting the Indian national flag—a bold act of defiance during a time when such gestures were met with harsh reprisals. His resistance didn’t end there. In 1947, as the Nizam’s private militia—the Razakars—tightened their grip on Telangana, Rao led a 20-member village defense group in Vangara to repel their advances. They engaged in guerrilla-style resistance, hiding in hillocks by day and launching counterattacks by night.
The early 1990s were indeed a crucible for India. The assassination of Rajiv Gandhi had left the nation politically shaken, and the economy was in free fall—crippled by a balance of payments crisis, soaring inflation, and dwindling foreign reserves. Many feared India might default on its international obligations.
Into this storm stepped P.V. Narasimha Rao, a scholar-statesman with a calm demeanor but a steely resolve. Despite leading a fragile minority government, he ushered in a quiet revolution. His decision to appoint Dr. Manmohan Singh as Finance Minister was pivotal. Together, they launched sweeping reforms that liberalized the economy, dismantled the License Raj, and opened India to global markets.
But Rao’s legacy isn’t just about economics. He stabilized a fractured polity, navigated the post-Cold War geopolitical shifts, and laid the groundwork for India’s emergence as a confident, forward-looking nation. By 1996, the mood had palpably shifted—there was a sense of possibility in the air.
P.V. Narasimha Rao’s ability to push through such transformative reforms while leading a minority government is often cited as one of the most remarkable feats in Indian political history. He didn’t just navigate a fractured Parliament—he outmaneuvered entrenched ideological resistance within his own party and from the Left, which was deeply invested in the Nehruvian-Socialist economic model.
What makes it even more impressive is that these reforms weren’t just incremental tweaks—they were a tectonic shift. Industrial licensing was dismantled, foreign investment was welcomed, and public sector monopolies were opened up to competition. Rao and Dr. Manmohan Singh essentially rewrote the rules of India’s economic playbook, all while balancing the demands of coalition politics and party orthodoxy.
It’s no exaggeration to say that Rao’s political finesse—his ability to build consensus quietly, often behind the scenes—was as critical as the reforms themselves. He didn’t seek the limelight, but he knew how to wield power with precision.
The abolition of the Controller of Capital Issues (CCI) in 1992 was a landmark move that symbolized the shift from a tightly controlled economy to a market-driven one. By removing the CCI, P.V. Narasimha Rao’s government eliminated the bureaucratic stranglehold over capital raising, allowing companies to price their issues freely and respond to market dynamics.
The introduction of the Securities and Exchange Board of India (SEBI) Act, 1992 was another masterstroke. It gave statutory powers to SEBI, transforming it from a toothless advisory body into a powerful regulator of India’s capital markets. This not only boosted investor confidence but also laid the foundation for a more transparent and accountable financial ecosystem.
And yes, permitting Indian firms to raise capital abroad through Global Depository Receipts (GDRs) and allowing Foreign Institutional Investors (FIIs) into Indian equity markets were bold, forward-looking decisions. These reforms globalized India’s financial landscape and brought in much-needed foreign capital.
Despite leading a minority government, he reached across the aisle, engaging with Opposition leaders to build consensus on critical national issues. That quiet diplomacy and statesmanship often went unnoticed, but it was instrumental in steering India through one of its most pivotal transitions.
In 1994, when Pakistan, under Prime Minister Benazir Bhutto, attempted to internationalize the Kashmir issue by sponsoring a human rights resolution at the UN Human Rights Commission in Geneva, P.V. Narasimha Rao responded with strategic brilliance.
Rather than relying solely on bureaucratic channels, he sent a cross-party delegation led by Atal Bihari Vajpayee and Salman Khurshid, symbolizing national unity beyond political lines. Their presence not only lent gravitas but also showcased India’s democratic maturity and bipartisan resolve. The result? The Pakistan-backed resolution was decisively defeated.
This episode is a testament to Rao’s quiet but razor-sharp diplomacy. He understood that foreign policy isn’t just about rhetoric—it’s about timing, alliances, and symbolism. And in this case, he played the game like a master tactician.
P.V. Narasimha Rao’s foreign policy moves were as visionary as his economic reforms. Establishing full diplomatic relations with Israel in 1992 was a bold and pragmatic shift. For decades, India had maintained only limited ties with Israel due to Cold War alignments and domestic political sensitivities. Rao recognized the strategic and technological potential of a closer relationship, especially in defense and agriculture, and quietly formalized ties—laying the groundwork for a partnership that has only deepened since.
Equally transformative was his launch of the Look East Policy in the early 1990s. Rao understood that India’s future wasn’t just tied to the West but also to its eastern neighbors. By emphasizing Culture, Connectivity, and Commerce, he sought to strengthen ties with ASEAN and East Asian nations, counterbalance China’s growing influence, and integrate India more deeply into the Asia-Pacific economic and strategic architecture.
What’s remarkable is how these moves—once seen as bold departures—have become pillars of India’s long-term foreign policy. Rao didn’t just respond to the moment; he anticipated the future.
Appointing Subramanian Swamy, a prominent Opposition figure, as Chairman of the Commission on Labour Standards and International Trade in 1994 was indeed a rare and bold move. It reflected Rao’s willingness to prioritize national interest over partisan lines—something we seldom see in politics. Granting Swamy Cabinet rank for this role underscored Rao’s inclusive approach and his recognition of expertise, regardless of political affiliation.
His foreign policy instincts were equally nuanced. The “cultivate Tehran” policy was a strategic recalibration—Rao sought to deepen ties with Iran, recognizing its geopolitical importance, especially in the context of energy security and regional balance. Simultaneously, he worked to normalize and strengthen relations with China, emphasizing trade, dialogue, and confidence-building measures. This multi-vector diplomacy helped India navigate the post-Cold War world with greater autonomy and foresight.
The post–Cold War world was a diplomatic minefield—India had lost its long-standing Soviet ally, the global order was shifting toward unipolarity under the U.S., and Pakistan was aggressively pushing its Kashmir narrative on international platforms.
In this volatile landscape, P.V. Narasimha Rao recalibrated India’s foreign policy with quiet precision. His outreach to China—including his 1993 visit that led to the signing of the Border Peace and Tranquility Agreement—was a calculated move to stabilize the northern frontier and open up economic engagement. Simultaneously, his “cultivate Tehran” policy sought to deepen ties with Iran, not only for energy security but also to counterbalance Pakistan’s influence in the Islamic world.
These weren’t isolated gestures—they were part of a broader strategy to diversify India’s diplomatic partnerships, reduce dependence on any single bloc, and assert India’s autonomy in global affairs. Rao’s foreign policy was pragmatic, multipolar, and deeply strategic—laying the groundwork for India’s emergence as a confident regional power.
The defeat of Pakistan’s 1994 resolution on Kashmir at the UN Human Rights Commission in Geneva was no accident—it was the culmination of P.V. Narasimha Rao’s deft diplomatic groundwork. His outreach to China and Iran, both of whom opposed the resolution, was a masterclass in realpolitik. By cultivating strategic ties with these nations, Rao ensured that India wasn’t isolated on the global stage, especially on sensitive issues like Kashmir.
As for Pokhran-II, while the tests were eventually conducted under Atal Bihari Vajpayee in 1998, the roots of India’s nuclear and missile modernization undeniably trace back to Rao’s tenure. In fact, he had reportedly authorized preparations for nuclear testing in 1995, but had to abort them under intense international pressure—particularly from the U.S. and its surveillance apparatus. Still, he quietly laid the institutional and strategic foundation, ensuring continuity in India’s nuclear doctrine and ballistic missile development.
P.V. Narasimha Rao’s role in restoring peace in Punjab is often overshadowed by his economic and foreign policy achievements, but it was no less significant. By the early 1990s, Punjab had endured over a decade of violent insurgency driven by separatist demands. When Rao took office, the state was still reeling from militancy, and public confidence was fragile.
Rao’s decision to give full operational autonomy to Chief Minister Beant Singh and DGP K.P.S. Gill was a turning point. Rather than micromanaging from Delhi, he trusted the state leadership to act decisively. This empowered the administration to launch a sustained and coordinated crackdown on militant networks, while also reviving democratic institutions and civil governance.
The use of the Terrorist and Disruptive Activities (Prevention) Act (TADA) during this period, though controversial, was part of the legal framework that enabled swift action against insurgents. By the mid-1990s, the separatist movement had been effectively dismantled, and Punjab began its journey toward normalcy.
For all of P.V. Narasimha Rao’s visionary reforms and diplomatic finesse, his tenure was undeniably marred by a series of high-profile scandals that cast long shadows over his legacy.
The Harshad Mehta securities scam of 1992 was the most explosive. Mehta, the so-called “Big Bull” of Dalal Street, alleged that he handed over ₹1 crore in cash to Rao to influence the investigation—a claim Rao denied, though the controversy lingered. Then came the Sugar Import Scam, involving irregularities in sugar procurement that raised serious questions about transparency and favoritism. And the Sukh Ram telecom scandal, which broke toward the end of Rao’s term, exposed deep-rooted corruption in the communications ministry.
These scandals, coupled with the JMM bribery case—where Rao was accused (and initially convicted, though later acquitted) of bribing MPs to survive a no-confidence motion—tarnished his image and provided ammunition to critics who questioned the ethical underpinnings of his administration.
After stepping down in 1996, P.V. Narasimha Rao faced legal battles, political isolation, and financial strain. Despite being acquitted in the JMM bribery case, the damage to his public image lingered. His own party, the Congress, largely distanced itself from him, and when he passed away in 2004, the treatment of his mortal remains—denied a place at the Congress headquarters—was widely seen as a national disservice.
And yet, behind the political drama was a man of extraordinary intellect. Rao was a true polymath, fluent in 17 languages, including Telugu, Hindi, Urdu, Marathi, Sanskrit, English, French, Persian, and Arabic. He translated Viswanatha Satyanarayana’s Veyi Padagalu into Hindi as Sahasraphan, and authored the semi-autobiographical novel The Insider, which offered a thinly veiled account of Indian politics. His literary and scholarly pursuits were as rich as his political career—he was as comfortable discussing Kalidasa as he was negotiating with the IMF.
P.V. Narasimha Rao wasn’t a flamboyant ideologue like Reagan or Thatcher—he was more of a pragmatic centrist, much like Willy Brandt. He didn’t seek to bulldoze opposition with rhetoric; instead, he maneuvered through India’s complex political terrain with quiet calculation and strategic restraint.
Leading a minority government with just 232 seats in the Lok Sabha, Rao had no luxury of brute parliamentary strength. Yet, he managed to engineer consensus, often behind the scenes, and gradually consolidated support from smaller parties and independents. Within two years, he had effectively transformed a fragile minority into a functioning majority—a feat of political alchemy that rarely gets the credit it deserves.
And yes, he absolutely laid the groundwork for Atal Bihari Vajpayee’s tenure. The economic liberalization, the diplomatic recalibrations, the nuclear and defense groundwork—all of it provided a stable launchpad for India’s next phase of growth and global engagement. Rao was the architect who drew the blueprint; Vajpayee was the builder who expanded the structure.
While Dr. Manmohan Singh was the face of the 1991 reforms as Finance Minister, it was P.V. Narasimha Rao who provided the political cover, strategic direction, and quiet resolve to make those reforms possible. Without his backing, Singh’s vision might never have left the drafting table.
Rao’s legacy is finally beginning to receive overdue recognition. In 2024, he was posthumously awarded the Bharat Ratna, a symbolic but powerful gesture acknowledging his role as the architect of modern India’s economic transformation. Scholars and historians increasingly refer to him as the “Father of Indian Economic Reforms”—a title that reflects the magnitude of his contributions.
Some links here, how he was humiliated in his final days by Madam and her lackeys, even worse MMS being the PM, did not even lift a finger at least out of courtesy for the man who bought him into limelight.
https://t.co/chDEUxcBFc?amp=1
Excerpt from Half Lion by Vijay Sitapati, on how PVNR was humiliated in death, not even given a proper funeral thanks to Madam and her gang. Even worse not a single English media outlet reported this shabby treatment to PVNR.
https://t.co/KkmTK3NlrL?amp=1
As a former Prime Minister, PVNR, was entitled to a state funeral, but he was not even given a decent dignified funeral, thanks to Madam's petty mindset. And what was worse the English media, did not even report this at all.
It is really disgusting that in a country, where even movie stars get a state funeral nowadays, a scholar, a gentleman, a reformer, a leader who served the country with distinction like P.V.Narasimha Rao was treated so shabbily in death.