P. V. Narasimha Rao

Pamulaparthi Venkata Narasimha Rao (?????????? ???? ???????? ???? in Telugu, ??????????? ?????? ??????? ??? in Devanagari) (June 28, 1921 – December 23, 2004) was the ninth Prime Minister of the Republic of India, and led possibly the most critically important administration in national history.

National Economic Crisis

Narasimha Rao took charge of the world's largest democracy at an extremely sensitive time. At the time Rao took charge the national economy was on the verge of collapse due to low foreign exchange reserves, and a stagnant socialistic economy riddled with incompetence, corruption and mismanagement. This is not to mention huge unemployment, poverty, illiteracy, and disease. India faced a severe balance of payments crisis and Rao was instrumental in initiating free market reforms that helped end the "licence raj" that was the mainstay of India's post independance economic policy. This meant literally cutting red-tape, liberalizing imports and exports control, and easing foreign investment regulations. His appointment of the former Governor of the Reserve Bank of India, a brilliant economist, Dr. Manmohan Singh, as Finance Minister was generally considered a very good move. Dr. Singh later rose to become the nation's 13th Prime Minister in 2004.

Related Topics:
Foreign exchange - Reserve Bank of India - Dr. Manmohan Singh

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Rao provided the much needed political will and support to push economic reforms. India's economy grew by an average of 6.3% between 1991-2000, a growth rate that continues with a predicted rate of 6.7% for 2005 (source: IMF World Economic Outlook). Wasteful expenditure was eliminated by large margins, and the tax policy reformed. Privatization of incompetent government corporations and a focus on increasing economic efficiency and competition for the private sector created a new era of economic expansion, growth and optimismm. Rajiv Gandhi's gruesome assassination created a deep sense of insecurity and panic. P.M. Rao effectively steered the country out of that mode and put India on the threshold of the 21st century. The modern economic boom in India is largely attributed to the fundamental reform started by P.M. Rao and Dr. Singh.

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This transformation is absolutely amazing when one considers it was carried out by two wise men under a Prime Minister leading a "minority" coalition government, liberating the futures of 850 million people from over 40 years of fabian socialism administered by corrupt, fragile and incompetent political regimes and bureaucracies. The present "Information Technology Giant" was a place where only 14 years ago, a special permission, or license was needed to buy a personal computer, a process taking ages and several bribes. All this ended thanks to Rao. Communications infrastructure and industrial infrastructure improved and expanded on a massive scale, and agricultural production increases also boosted the country's fortunes.

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Prime Minister Rao also won accolades from his critics and political opponents when he chose the Leader of the Opposition (and future PM) Atal Bihari Vajpayee of the BJP, to represent India at the World Disarmament Conference. Rao could have chosen any of his MPs or his own Minister for External Affairs, but he opted for the experienced, hardened statesman of the BJP for the Conference could have put a lot of pressure on national security by imposing restrictions on India's nuclear program. The nation needed a tough representative, and Rao thus did not hesitate to opt for his prime political opponent.

Related Topics:
Atal Bihari Vajpayee - BJP

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