P. V. Narasimha Rao

Pamulaparti Venkata Narasimha Rao (Telugu: �.ి�.నర�ంిహ�ావ�) (28 June 1921 – 23

December 2004) was an Indian lawyer, politician and freedom fighter[1] who served as the

ninth Prime Minister of India (1991–1996).[2] He led an important administration, overseeing a

major economic transformation and several home incidents affecting national security of

India.[3] Rao who held the Industries portfolio was personally responsible for the dismantling of

the Licence Raj as this came under the purview of the Industries Ministry.[4] He is often

referred to as the "Father of Indian Economic Reforms".[5][6] Rao accelerated the dismantling

of the license raj, reversing the socialist policies under the government of Rajiv Gandhi. He

employed Dr. Manmohan Singh as his Finance Minister to embark on historic economic

transition. With Rao's mandate, Dr. Manmohan Singh launched India's globalisation angle of the

reforms that implemented the International Monetary Fund (IMF) policies to rescue the

almost bankrupt nation from economic collapse.[4] Rao was also referred to as Chanakya for his

ability to steer tough economic and political legislation through the parliament at a time when

he headed a minority government.[7 ][8]

Rao's term as Prime Minister was an eventful one in India's history. Besides marking a

paradigm shift from the industrialising, mixed economic model of Jawaharlal Nehru to a market

driven one, his years as Prime Minister also saw the emergence of the Bharatiya Janata Party

(BJP), a major right-wing party, as an alternative to the Indian National Congress which had

been governing India for most of its post-independence history. Rao's term also saw the

destruction of the Babri Mosque in Ayodhya which triggered one of the worst Hindu-Muslim

riots in the country since its independence.[9] Rao died in 2004 of a heart attack in New Delhi.

He was cremated in Hyderabad.[10]

Early life

P.V. Narasimha Rao had "humble social origins".[7 ] He was born in 28 June 1921 at

Lakkampally[citation needed] village near Narsampet in Warangal District to a Telugu family. At

the age of 3 years he was adopted and brought up to Vangara village in the present-day

Karimnagar district of Andhra Pradesh (then part of Hyderabad State).[1][7 ] His father P.

Ranga Rao and mother Rukminiamma hailed from agrarian families.[7 ]

Narasimha Rao was popularly known as PV. He studied Bachelor's in the Arts college at the

Osmania University and later on went to Fergusson College now under University of Pune

where he completed a Master's degree in law[11] His mother tongue was Telugu and had an

excellent command of Marathi. In addition to eight Indian languages (Telugu, Hindi, Urdu,

Oriya, Marathi, Bengali, Gujarati, Tamil), he spoke English, French, Arabic, Spanish, German,

Greek, Latin and Persian.[12] Along with his distant cousin Pamulaparthi Sadasiva Rao, Ch. Raja

Greek, Latin and Persian.[12] Along with his distant cousin Pamulaparthi Sadasiva Rao, Ch. Raja

Narendra and Devulapalli Damodar Rao, PV edited a Telugu weekly magazine called Kakatiya

Patrika in the 1940s.[13] PV and Sadasiva Rao used to contribute articles under the pen-name

Jaya-Vijaya.[13][14]

Narasimha Rao has three sons and five daughters. His eldest son P.V. Rangarao was an

education minister in Kotla Vijaya Bhaskara Reddy cabinet and MLA from Hanamakonda

Assembly Constituency, in Warangal District for two terms. His second son P.V. Rajeswara Rao

was a Member of Parliament of the 11th Lok Sabha (15 May 1996 – 4 December 1997) from

Secunderabad Lok Sabha constituency.[15][16]

Political career

Narasimha Rao was an active freedom fighter during the Indian Independence movement[1]

and joined full-time politics after independence as a member of the Indian National Congress.

Narasimha Rao served brief stints in the Andhra Pradesh cabinet (1962–1971) and as Chief

minister of the state of Andhra Pradesh (1971–1973).[11] His tenure as Chief minister of

Andhra Pradesh is well remembered even today for his land reforms and strict implementation

of land ceiling acts in Telangana region. President rule had to be imposed to counter the 'Jai

Andhra' movement during his tenure.

When the Indian National Congress split in 1969 Rao stayed on the side of then Prime Minister

Indira Gandhi and remained loyal to her during the Emergency period (1975–77).[12] He rose

to national prominence in 1972 for handling several diverse portfolios, most significantly Home,

Defence and Foreign Affairs, in the cabinets of both Indira Gandhi and Rajiv Gandhi.[11] In fact,

it is speculated that he was in the running for the post of India's President along with Zail Singh

in 1982.[17 ]

Rao very nearly retired from politics in 1991. It was the assassination of the Congress President

Rajiv Gandhi that made him make a comeback.[18] As the Congress had won the largest

number of seats in the 1991 elections, he got the opportunity to head the minority government

as Prime Minister. He was the first person outside the Nehru-Gandhi family to serve as Prime

Minister for five continuous years, the first to hail from southern India and also the first from

the state of Andhra Pradesh.[3][19] Since Rao had not contested the general elections, he then

participated in a by-election in Nandyal to join the parliament. Rao won from Nandyal with a

victory margin of a record 5 lakh (500,000) votes and his win was recorded in the Guinness

Book Of World Records.[20][21] His cabinet included Sharad Pawar, himself a strong contender

for the Prime Minister's post, as defence minister. He also broke convention by appointing a

non-political economist and future prime minister, Manmohan Singh as his finance

minister.[22][23]

Achievements

Achievements

Economic reforms

Main article: Economic liberalization in India

Rao's major achievement is generally considered to be the liberalisation of the Indian economy.

The reforms were adopted to avert impending international default in 1991.[6][24] The reforms

progressed furthest in the areas of opening up to foreign investment, reforming capital

markets, deregulating domestic business, and reforming the trade regime. Rao's government's

goals were reducing the fiscal deficit, Privatization of the public sector and increasing

investment in infrastructure. Trade reforms and changes in the regulation of foreign direct

investment were introduced to open India to foreign trade while stabilising external loans. Rao

wanted I.G. Patel as his finance minister.[25] Patel was an official who helped prepare 14

budgets, an ex-governor of Reserve Bank of India and had headed The London School of

Economics and Political Science.[25] But Patel declined. Rao then chose Manmohan Singh for the

job. Manmohan Singh, an acclaimed economist, played a central role in implementing these

reforms.

Major reforms in India's capital markets led to an influx of foreign portfolio investment. The

major economic policies adopted by Rao include:

Abolishing in 1992 the Controller of Capital Issues which decided the prices and number

of shares that firms could issue.[24][26]

Introducing the SEBI Act of 1992 and the Security Laws (Amendment) which gave SEBI

the legal authority to register and regulate all security market intermediaries.[24][27 ]

Opening up in 1992 of India's equity markets to investment by foreign institutional

investors and permitting Indian firms to raise capital on international markets by issuing

Global Depository Receipts (GDRs).[28]

Starting in 1994 of the National Stock Exchange as a computer-based trading system

which served as an instrument to leverage reforms of India's other stock exchanges. The

NSE emerged as India's largest exchange by 1996.[29]

Reducing tariffs from an average of 85 percent to 25 percent, and rolling back

quantitative controls. (The rupee was made convertible on trade account.)[30]

Encouraging foreign direct investment by increasing the maximum limit on share of

foreign capital in joint ventures from 40 to 51% with 100% foreign equity permitted in

priority sectors.[31]

Streamlining procedures for FDI approvals, and in at least 35 industries, automatically

approving projects within the limits for foreign participation.[24][32]

The impact of these reforms may be gauged from the fact that total foreign investment

(including foreign direct investment, portfolio investment, and investment raised on

international capital markets) in India grew from a minuscule US $132 million in 1991–92 to

$5.3 billion in 1995–96.[31] Rao began industrial policy reforms with the manufacturing sector.

He slashed industrial licensing, leaving only 18 industries subject to licensing. Industrial

regulation was rationalised.[24]

National security, foreign policy and crisis management

Rao energised the national nuclear security and ballistic missiles program, which ultimately

resulted in the 1998 Pokhran nuclear tests. It is speculated that the tests were actually planned

in 1995, during Rao's term in office,[33] and that they were dropped under American pressure

when the US intelligence got the whiff of it.[34] Another view was that he purposefully leaked

the information to gain time to develop and test thermonuclear device which was not yet

ready.[35] He increased military spending, and set the Indian Army on course to fight the

emerging threat of terrorism and insurgencies, as well as Pakistan and China's nuclear

potentials. It was during his term that terrorism in the Indian state of Punjab was finally

defeated.[36] Also scenarios of aircraft hijackings, which occurred during Rao's time ended

without the government conceding the terrorists' demands.[37 ] He also directed negotiations to

secure the release of Doraiswamy, an Indian Oil executive, from Kashmiri terrorists who

kidnapped him,[38] and Liviu Radu, a Romanian diplomat posted in New Delhi in October 1991,

who was kidnapped by Sikh terrorists.[39] Rao also handled the Indian response to the

occupation of the Hazratbal holy shrine in Jammu and Kashmir by terrorists in October

1993.[40] He brought the occupation to an end without damage to the shrine. Similarly, he dealt

with the kidnapping of some foreign tourists by a terrorist group called Al Faran in Kashmir in

1995 effectively. Although he could not secure the release of the hostages, his policies ensured

that the terrorists demands were not conceded to, and that the action of the terrorists was

condemned internationally, including by Pakistan.[41]

Rao also made diplomatic overtures to Western Europe, the United States, and China.[42] He

decided in 1992 to bring into the open India's relations with Israel, which had been kept

covertly active for a few years during his tenure as a Foreign Minister, and permitted Israel to

open an embassy in New Delhi.[43] He ordered the intelligence community in 1992 to start a

systematic drive to draw the international community's attention to alleged Pakistan's

sponsorship of terrorism against India and not to be discouraged by US efforts to undermine

the exercise.[44][45] Rao launched the Look East foreign policy, which brought India closer to

ASEAN.[46] He decided to maintain a distance from the Dalai Lama in order to avoid

aggravating Beijing's suspicions and concerns, and made successful overtures to Tehran. The

'cultivate Iran' policy was pushed through vigorously by him.[47 ] These policies paid rich

'cultivate Iran' policy was pushed through vigorously by him.[47 ] These policies paid rich

dividends for India in March 1994, when Benazir Bhutto's efforts to have a resolution passed by

the UN Human Rights Commission in Geneva on the human rights situation in Jammu and

Kashmir failed, with opposition by China and Iran.[48]

Rao's crisis management after the 12 March 1993 Bombay bombings was highly praised. He

personally visited Bombay after the blasts and after seeing evidence of Pakistani involvement

in the blasts, ordered the intelligence community to invite the intelligence agencies of the US,

UK and other West European countries to send their counter-terrorism experts to Bombay to

examine the facts for themselves.[49]

Challenges faced in office

Economic crisis and initiation of liberalisation

Rao decided that India, which in 1991 was on the brink of bankruptcy,[50] would benefit from

liberalising its economy. He appointed an economist, Dr. Manmohan Singh, a former governor

of the Reserve Bank of India, as Finance Minister to accomplish his goals.[3] This liberalization

was criticized by many socialist nationalists at that time.[51]

Handling of separatist movements

Rao has successfully decimated the Punjab separatist movement and neutralised Kashmir

separatist movement. It is said that Rao was 'solely responsible' for the decision to hold

elections in Punjab, no matter how narrow the electorate base would be.[52] In dealing with

Kashmir Rao's government was highly restrained by US government and its president

Mr.Clinton. Rao's government introduced the Terrorist and Disruptive Activities (Prevention)

Act (TADA),[53] India's first anti-terrorism legislation, and directed the Indian Army to

eliminate the infiltrators.[54] Despite a heavy and largely successful Army campaign, the state

descended into a security nightmare. Tourism and commerce were largely disrupted. Special

police units were often accused of committing atrocities against the local population, Rape,

kidnapping, torture and detention under false accusations.[55]

see also Separatist movements of India

Babri Mosque riots

In the late 1980s, the Bharatiya Janata Party (BJP) brought the temple issue to the

centrestage of national politics, and the BJP and VHP began organising larger protests in

Ayodhya and around the country

Members of the Vishva Hindu Parishad (VHP) demolished the Babri Mosque (which was

constructed by India's first Mughal emperor, Babar) in Ayodhya on 6 December 1992.[56] The

site is believed by Hindus to be the birthplace of the Hindu god Rama and is believed by the

Hindu Community to be a place of a Hindu temple created in the early 16th century. The

destruction of the disputed structure, which was widely reported in the international media,

unleashed large scale communal violence, the most extensive since the Partition of India.

Hindus and Muslims were indulged in massive rioting across the country, and almost every

major city including Delhi, Mumbai, Kolkata, Ahmedabad, Hyderabad, Bhopal struggled to

control the Unrest.[citation needed]

Later Liberhan Commission, after extensive hearing and investigation, exonerated PV

Narasimha Rao. It pointed out that Rao was heading a minority government, the Commission

accepted the centre’s submission that central forces could neither be deployed by the Union in

the totality of facts and circumstances then prevailing, nor could President’s Rule be imposed

"on the basis of rumours or media reports". Taking such a step would have created "bad

precedent" damaging the federal structure of and would have "amounted to interference" in the

state administration, it said. The state “deliberately and consciously understated" the risk to

the disputed structure and general law and order. It also said that the Governor’s assessment

of the situation was either badly flawed or overly optimistic and was thus a major impediment

for the central government. The Commission further said, "... knowing fully well that its

facetious undertakings before the Supreme Court had bought it sufficient breathing space, it

(state government) proceeded with the planning for the destruction of the disputed structure.

The Supreme Court’s own observer failed to alert it to the sinister undercurrents. The

Governor and its intelligence agencies, charged with acting as the eyes and ears of the central

government also failed in their task. Without substantive procedural prerequisites, neither the

Supreme Court, nor the Union of India was able to take any meaningful steps."[57 ]

In yet another discussion with journalist Shekhar Gupta, answered several of the questions on

the demolition. He said he was wary of the impact of hundreds of deaths on the nation, and it

could have been far worse. And also he had to consider the scenario in which some of troops

turned around and joined the mobs instead. Regarding dismissal of Kalyan Singh (government),

he said, "mere dismissal does not mean you can take control. It takes a day or so appointing

advisers, sending them to Lucknow, taking control of the state. Meanwhile, what had to happen

would have happened and there would have been no Kalyan Singh to blame either."[58]

Latur earthquake

A strong earthquake in Latur, Maharashtra, also killed 10,000 people and displaced hundreds

of thousands in 1993.[59] Rao was applauded by many for using modern technology and

resources to organise major relief operations to assuage the stricken people, and for schemes of

economic reconstruction.[citation needed]

Corruption scandals

In July 1993, Rao's government was facing a no-confidence motion, because the opposition felt

In July 1993, Rao's government was facing a no-confidence motion, because the opposition felt

that it did not have sufficient numbers to prove a majority. It was alleged that Rao, through a

representative, offered millions of rupees to members of the Jharkhand Mukti Morcha (JMM),

and possibly a breakaway faction of the Janata Dal, to vote for him during the confidence

motion. Shailendra Mahato, one of those members who had accepted the bribe, turned

approver. In 1996, after Rao's term in office had expired, investigations began in earnest in the

case. In 2000, after years of legal proceedings, a special court convicted Rao and his colleague,

Buta Singh (who is alleged to have escorted the MPs to the Prime Minister).[60] Rao appealed

to a higher court and remained free on bail. The decision was overturned mainly due to the

doubt in credibility of Mahato's statements (which were extremely inconsistent) and both Rao

and Buta Singh were cleared of the charges in 2002.[61]

Rao, along with fellow minister K.K. Tewary, Chandraswami and K.N. Aggarwal were accused of

forging documents showing that Ajeya Singh had opened a bank account in the First Trust

Corporation Bank in St. Kitts and deposited $21 million in it, making his father V. P. Singh its

beneficiary. The alleged intent was to tarnish V. P. Singh's image. This supposedly happened in

1989. However only after Rao's term as PM had expired in 1996, was he formally charged by

the Central Bureau of Investigation for the crime. Less than a year later the court acquitted

him due to lack of evidence linking him with the case.[62]

Lakhubhai Pathak, an Indian businessman living in England alleged that Chandraswami and

K.N. Aggarwal alias Mamaji, along with Mr. Rao, cheated him out of $100,000. The amount was

given for an express promise for allowing supplies of paper pulp in India, and Pathak alleged

that he spent an additional $30,000 entertaining Chandraswami and his secretary. Rao and

Chandraswami were acquitted of the charges in 2003,[63]

Later life and financial difficulties

In the 1996 general elections Rao's Congress Party was badly defeated and he had to step down

as Prime Minister. He retained the leadership of the Congress party until late 1996 after which

he was replaced by Sitaram Kesri. According to Congress insiders who spoke with the media,

Rao had kept an authoritarian stance on both the party and his government, which led to the

departure of numerous prominent and ambitious Congress leaders during his reign.[citation

needed]

Rao rarely spoke of his personal views and opinions during his 5-year tenure. After his

retirement from national politics Rao published a novel called The Insider (ISBN 0-670-87850-

2). The book, which follows a man’s rise through the ranks of Indian politics, resembled events

from Rao’s own life.

According to a vernacular source, despite holding many lucrative posts he faced many financial

troubles. One of his sons was educated with the assistance of his son-in-law. He also faced

trouble in paying fees for a daughter of his who was then studying medicine.[64] According to

trouble in paying fees for a daughter of his who was then studying medicine.[64] According to

PVRK Prasad, an IAS officer who was Narasimha Rao's media advisor when the latter was

Prime Minister, Rao asked his friends to sell away his house at Banajara hills to clear the dues of

advocates.[65] Rao was afraid of dying before clearing his dues to the lawyers.

Rao suffered a heart attack on 9 December 2004, and was taken to the All India Institute of

Medical Sciences where he died 14 days later at the age of 83.[66]

Death

He was cremated with full state honours in Hyderabad, after the then Chief minister of Andhra

Pradesh, Dr. Y.S.Rajashekhar Reddy intervened.[67 ] His body was kept in state at the Jubilee

Hall in Hyderabad. His funeral was attended by the incumbent Prime Minister Manmohan

Singh, former Prime Minister H. D. Deve Gowda, the then Bharatiya Janata Party (BJP)

president L.K. Advani, the then Defence Minister Pranab Mukherjee, the then Finance Minister

P. Chidambaram and many other dignitaries.[68]

Literary Achievement

Rao had great interest in Indian literature among many languages. He was very fluent in many

languages including Telugu, Marathi, Hindi, English, Tamil, French etc. Due to his college

education in Fergusson College In Pune,he was very prolific reader & speaker of Marathi. He

translated the great Telugu literary work Veyipadagalu of Kavi Samraat Viswanatha

Satyanarayana into Hindi as Sahasraphan. He also translated Hari Narayan Apte's Marathi

novel 'Pan Lakshat Kon Gheto?'(But who thinks?) in to Telugu. He was also invited to be the

chief guest of Akhil Bhartiya Marathi Sahitya Sanmelan where he gave speech in Marathi. In

his later life, he wrote his autobiography 'The Insider' which depicts his experiences in politics.

Rao's legacy and the current Congress leadership

It has been noted that the current leadership of the Congress party attempts to undermine

Rao's legacy by denying him the credit for fostering economic reforms in India. For instance, it

is reported that in a speech to mark the 125th anniversary of the Congress, the party president

Sonia Gandhi "made it a point to ignore P.V. Narasimha Rao".[69][7 0] It is also reported

that[7 1]

"Sonia Gandhi praised contributions of all Congress prime ministers except P V

Narasimha Rao in her speech ... Making no mention of Rao in her 15-minute speech, she

said Rajiv Gandhi scripted the course of economic policies that were followed by the

government (headed by Rao) for the following five years."

Several commentators argue that while Rao should be rightly blamed for his failure to protect

the Babri Masjid, at the same time, he should be given credit for initiating the process of

economic reforms in India. In an op-ed article published in Business Standard, A.K.

economic reforms in India. In an op-ed article published in Business Standard, A.K.

Bhattacharya writes:[7 2]

"Even today, the Congress leadership shows extreme reluctance to acknowledge the role

PV Narasimha Rao played in appointing Manmohan Singh as his finance minister and

giving him the freedom to unveil the economic reforms package to bail the Indian

economy out of an unprecedented crisis. The Congress leadership was correct in blaming

Narasimha Rao for his political misjudgment on the Ayodhya issue. But it is now time the

same leadership also acknowledged Narasimha Rao’s role in ushering in economic

reforms."

In similar vein, Harsh V. Pant argues:[7 3] [7 4]

"Clearly as Prime Minister Rao failed in his duty to protect the disputed structure in

Ayodhya ... Rao's failure cannot be an excuse to deprive him of all the credit that is his

due as the nation's prime minister at one of the most difficult times in India's

contemporary history ... Manmohan Singh is touted as the father of Indian economic

reforms but as Singh has himself acknowledged it was Rao was fathered the process ...

Rao deftly navigated the political waters ... and made economic reforms politically

tenable. How ironical then that today the same Congress party functionaries ... trying to

take credit for India's economic success without acknowledging the role of Rao who

envisioned and executed the process?"

Historian Ramachandra Guha asserts that Rao has become "the great unmentionable" in the

Congress party. In an op-ed article in The Telegraph (Calcutta), Guha writes:[7 5]

"Narasimha Rao may be denied the credit by the present Congress leadership for taking

the Indian economy well above the ‘Hindu rate of growth’ of two to three per cent per

annum. But they do not let the public forget his greatest defeat, which was his failure to

stop the demolition of the Babri Masjid in December, 1992 ... From the point of view of

the present Congress leadership, Rao’s problem was not just that he was not a Nehru-

Gandhi, it was also that as prime minister he did not genuflect enough to the Nehru-

Gandhis ... Now that the Nehru-Gandhis once more control both party and government,

P.V. Narasimha Rao has become the great unmentionable within Congress circles. I

should modify that statement – Rao can be mentioned only if it is possible to disparage

him. Thus his contributions to economic growth and to a more enlightened foreign policy

are ignored, while his admittedly pusillanimous attitude towards the kar sevaks in

Ayodhya is foregrounded ... To forget his achievements, but to remember his mistakes, is

a product of cold and deliberate calculation."

Commenting on the report of the Liberhan Commission, which exonerated Rao for his role in

the Babri Masjid demolition, Indian Express editor Shekhar Gupta writes:[7 6]

"He surely failed as prime minister to prevent the tragedy at Ayodhya. But his rivals in

"He surely failed as prime minister to prevent the tragedy at Ayodhya. But his rivals in

the Congress did their own party such disservice by spreading the canard that his (and

their) government was responsible for that crime. This, more than anything else, lost

them the Muslim vote in Uttar Pradesh and Bihar ... any dispassionate reading of recent

political history will tell you that this is a self-inflicted injury. The Congress has itself built

a mythology whereby the Muslims have come to hold their party as responsible for Babri

as the BJP ... If you take Justice Liberhan’s indictment of so many in the BJP seriously,

you cannot at the same time dismiss his exoneration of Rao, and the government, and the

Congress Party under him. You surely cannot put the clock back on so much injustice

done to him, like not even allowing his body to be taken inside the AICC building. But the

least you can do now is to give him a memorial spot too along the Yamuna as one of our

more significant (and secular) prime ministers who led us creditably through five difficult

years, crafted our post-Cold War diplomacy, launched economic reform and, most

significantly, discovered the political talent and promise of a quiet economist called

Manmohan Singh."

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External links

P. V. Narasimha Rao – A Profile

Obituary – Pamulaparthi Venkata Narasimha Rao

P. V. Narasimha Rao at Find a Grave

en.wikipedia.org

http://en.wikipedia.org/wiki/P_V_Narasimha_Rao

http://goo.gl/ffgS