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[2] ©Chronicle IAS Academy

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[3]©Chronicle IAS Academy

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CONTENTS

Sl. No. TOPICS Pg. No.

1. Partition and Integration of Princely States ...................................... 5-9

2. Making of the Constitution ............................................................. 10-15

3. The Nehru Era (1947–1964) ........................................................... 16-23

4. Lal Bahadur Shastri (1964–1966) ................................................... 24-26

5. Indira Gandhi Tenure and Emergency (1969–1984) ..................... 27-36

6. The Rajiv Gandhi’s Tenure and Era of Coliation (1984–1991)...... 37-42

7. India From 1991 to 1998 ............................................................... 43-46

8. A.B. Vajpayee Tenure (NDA-I) ......................................................... 47-51

9. Manmohan Singh Tenure (UPA I & II) ........................................... 52-57

10. Overview of Economic & Foreign Policy since 1991 .................... 58-64

11. Time Line Since 1947 ...................................................................... 65-66

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PARTITION ANDPARTITION ANDPARTITION ANDPARTITION ANDPARTITION AND

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The era after India’s independence from colonialrule starts with its partition into two halves – Indiaand Pakistan. Lord Mountbatten became the firstGovernor General of free India and M.A. Jinnahthat of Pakistan. The transition was violent, withblood curling massacres all over the country, ampleproof to the historic acrimony that the Indiansshared within themselves.

PARTITION: THE TRAGEDY

India and Pakistan won independence inAugust 1947, following a nationalist struggle lastingnearly three decades. It set a vital precedent forthe negotiated winding up of European empireselsewhere. Unfortunately, it was accompanied bythe largest mass migration in human history of some10 million. As many as one million civilians died inthe accompanying riots and local-level fighting,particularly in the western region of Punjab whichwas cut in two by the border. One explanation forthe chaos in which the two nations came into being,is Britain's hurried withdrawal with the realisationit could ill-afford its over-extended empire.

Pakistan celebrated its independence on 14August and India on 15 August, 1947, the borderbetween the two new states was not announceduntil 17 August. It was drawn up by a Britishlawyer, Cyril Radcliffe, who had little knowledgeof Indian conditions and with the use of out-of-date maps and census materials. Communities,families and farms were cut in two, but by delayingthe announcement the British managed to avoidresponsibility for the worst fighting and the massmigration that had followed. The total populationof the undivided Punjab Province was 33 million.It included territories directly administered by theBritish (pop. 28 million) and several princely states.The Punjab was a Muslim majority province whileHindus and Sikhs together made up a very largeminority of 44-47 per cent. The principle on whichIndia and the Punjab were divided was thatMuslim-majority areas were separated from the restof India and given to Pakistan. After partition, 90%of the sub-continent's industry, and taxable income

base remained in India, including the largest citiesof Delhi, Bombay and Calcutta. The economy ofPakistan was chiefly agricultural, and controlledby feudal elites. The great advantage enjoyed bythe Indian National Congress was that it hadworked hard for 40 years to reconcile differencesand achieve some cohesion among its leaders. Theheartland of support for the Muslim League,however, lay in central north India (Uttar Pradesh)which was not included within Pakistan.

The Partition of India ranks, beyond doubt, asone of the 10 greatest tragedies in human history.For the Punjab alone, the loss of life is estimatedsomewhere between 500,000-800,000 and 10million people were forced to flee for their lives.More importantly, after World War II the first caseof ethnic cleansing took place in the Punjab.Therefore, it bore the brunt of the partition violence.Thus at the end of 1947 all traces of a Muslimpresence in the Indian East Punjab were wipedout, except for some Muslims remaining in the tinyprincely state of Malerkotla. In the Pakistani WestPunjab, Hindus and Sikhs became conspicuous bytheir absence.

Fear of an uncertain future, lack ofcommunication between the leaders of the estrangedcommunities, the waning authority of the Britishand the consequent unreliability of the stateinstitutions and functionaries created the social andpolitical milieu in which suspicion and fearproliferated, generating angst among the commonpeople. In such situations reaction and overreactionled to intended and unintended consequences whichaggravated and finally resulted in the biggesthuman tragedy in the history of the Indian sub-continent. Partition was more than a geographicalmutilation of the sub-continent; it was one of thosedehumanising horror stories that have sustainedthe 20th century's narratives on revolutions andliberation, be it the Fuhrer's Final Solution or thePol Pot's ethnic cleansing, Mao's Cultural Revolutionor Stalin's Great Terror. It is a stain on our freedom,the scar on our memory as a nation.

In January 1948, the government of India,


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following a fast by Gandhiji, paid Pakistan Rs. 550million as part of the assets of Partition, even whenit feared that the money might be used to financemilitary action in Kashmir. The governments of thetwo countries differed on issues raised by evacueeproperty, left behind by those who migrated fromthe two countries, but every effort was made toresolve them through renegotiations. Since Augustof 1947, India and Pakistan have fought three majorwars and one minor war over territorial disputes.The boundary line in Jammu and Kashmir isparticularly troubled. The partition of India is asignal event in world history, not merely in thehistory of the Indian sub-continent.

As a result of Partition, 8 million refugees hadcome into the country from what was nowPakistan. These people had to be found homes andjobs. Then there was the problem of the princelystates, almost 500 of them, each ruled by amaharaja or a nawab, each of whom had tobe persuaded to join the new nation. The problemsof the refugees and of the princely states had to beaddressed immediately. In the longer term, the newnation had to adopt a political system that wouldbest serve the hopes and expectations of itspopulation.

India’s population in 1947 was large, almost345 million. It was also divided. There weredivisions between high castes and low castes,between the majority Hindu community andIndians who practiced other faiths. The citizens ofthis vast land spoke many different languages, woremany different kinds of dress, ate different kindsof food and practiced different professions. Howcould they be made to live together in one nation-state?

The government had to stretch itself to themaximum to give relief to and resettle andrehabilitate the nearly six million refugees fromPakistan who had lost their all there and whoseworld had been turned upside down. The task tooksome time but it was accomplished. By 1951, theproblem of the rehabilitation of the refugees fromWest Pakistan was fully tackled. The task ofrehabilitating and resettling refugees from EastBengal was made more difficult by the fact thatthe exodus of Hindus from East Bengal continuedfor years. While nearly all the Hindus and Sikhsfrom West Pakistan had migrated in one go in 1947,a large number of Hindus in East Bengal had stayedon there in the initial years of 1947 and 1948.However, as violence against Hindus broke out

periodically in East Bengal, there was a steadystream of refugees from there year after year until1971. Providing them with work and shelter andpsychological assurance, therefore became acontinuous and hence a difficult task. Unlike inBengal, most of the refugees from West Punjabcould occupy the large lands and property left bythe Muslim migrants to Pakistan from Punjab, U.P.and Rajasthan and could therefore be resettled onland.

This was not the case in West Bengal. Inaddition, because of linguistic affinity, it was easierfor Punjabi and Sindhi refugees to settle in today’sHimachal Pradesh and Haryana and western U.P.,Rajasthan and Delhi. The resettlement of therefugees from East Bengal could take place only inBengal and to a lesser extent in Assam and Tripura.As a result, a very large number of people whohad been engaged in agricultural occupations beforetheir displacement were forced to seek survival insemi-urban and urban contexts as the underclass.

To the problem of unity was added the problemof development. At Independence, the vast majorityof Indians lived in the villages. Farmers andpeasants depended on the monsoon for theirsurvival. So did the non-farm sector of the ruraleconomy, for if the crops failed, barbers, carpenters,weavers and other service groups would not getpaid for their services either. In the cities, factoryworkers lived in crowded slums with little accessto education or healthcare. Clearly, the new nationhad to lift its masses out of poverty by increasingthe productivity of agriculture and by promotingnew, job-creating industries. Unity anddevelopment had to go hand in hand. If thedivisions between different sections of Indiawere not healed, they could result in violent andcostly conflicts – high castes fighting with low castes,Hindus with Muslims and so on. At the same time,if the fruits of economic development did not reachthe broad masses of the population, it could createfresh divisions – for example, between the rich andthe poor, between cities and the countryside,between regions of India that were prosperous andregions that lagged behind.

ASSASSINATION OF MAHATMA GANDHI

Rejoicing in August 1947, the man who hadbeen in the forefront of the freedom struggle since1919, the man who had given the message of non-violence and love and courage to the Indian people,


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the man who had represented the best in Indianculture and politics, was touring the hate-torn landsof Bengal and Bihar, trying to douse the communalfire and bring comfort to people who were payingthrough senseless slaughter the price of freedom.In reply to a message of birthday congratulationsin 1947, Gandhiji said that he no longer wished tolive long and that he would invoke the aid of theall-embracing Power to take me away from this“vale of tears” rather than make me a helplesswitness of the butchery by man become savage,whether he dares to call himself a Muslim or aHindu or what not.

The celebrations of independence had hardlydied down when on 30th January, 1948, a radicalminded Hindu, Nathuram Godse, assassinatedGandhiji at Birla house, just before his eveningprayers. The whole nation was shocked andstricken with grief and communal violence retreatedfrom the minds of men and women. Expressingthe nation’s sorrow, Nehru spoke over the All IndiaRadio:

“Friends and comrades, the light has gone outof our lives and there is darkness everywhere . . .The light has gone out, I said, and yet I was wrong.For the light that shone in this country was noordinary light . . . that light represented somethingmore than the immediate present; it representedthe living, the eternal truths, reminding us of theright path, drawing us from error, taking thisancient country to freedom.”

INTEGRATION OF PRINCELY STATES

With great skill and diplomacy and using bothpersuasions and pressure, Sardar Vallabhbhai Patelsucceeded in integrating the hundreds of princelystates with the India Union. Some states have joinedthe Contituent Assembly in April 1947. But themajority of princess had stayed away and a few,such as those of Travancore, Bhopal andHyderabad, publicly announced their desire toclaim an independent status. On 27 June, 1947,Sardar Patel assumed charge of the newly createdStates, Department with V.P. Menon as itsSecretary. Patel’s first step was to appeal to theprinces whose territories fell inside India to accedeto the Indian Union in three subjects: foreignrelation, defense and communications. Fearful ofthe rising people’s movements in states, and ofPatel’s reputation for firmness all but three of them–Junagadh, Jammu and Kashmir and Hyderabad—acceded to India by 15 August, 1947.

Junagadh was a small state on the coast ofSaurashtra surrounded by Indian territory andtherefore without any geographical continuity withPakistani. Yet, its Nawab announced accession ofhis state to Pakistan on 15 August, 1947 eventhought the people of the state, overwhelminglyHindu, desired to join India. Pakistan acceptedJunagadh’s accession. On the other hand, the peopleof the state were against the ruler’s decision. Theyorganized a popular movement, forced the Nawabto flee and established a provisional government.Indian troops marched into the state. A plebiscitewas held in the state in February 1948 which wentoverwhelmingly in favour of joining India.

The state of Kashmir was bordered on bothIndia and Pakistan. Its ruler Hari Singh was aHindu, while nearly 75 per cent of the populationwas Muslim. Hari Singh did not accede either toIndia or Pakistan. He hoped to stay out of bothand to continue as an independent ruler. On 22October, with the onset of winter, several Pathantribesman, led unofficially by Pakistani armyofficers, invaded Kashmir and rapidly pushedtowards Srinagar, the capital of Kashmir. In panic,on 24 October, the Maharaja appealed to India formilitary assistance. Within days, acting underpressure, the Maharaja acceded to India and signedthe instrument of accession with India. Afteraccession India decided to send troops to Srinagar.In order to avoid a full-scale war between Indiaand Pakistan, the Government of India agreed, on30 December, 1947, on Mountbatten’s suggestion,to refer the Kashmir problem to the United NationsSecurity Council, asking for vacation of aggressionby Pakistan. Nehru was to regret this decision lateras the Kashmir issue became a victim of cold warpolitics. Security Council, guided by Britain andthe United States, tended to side with Pakistaninstead of declaring Pakistan an aggressor state.

The Nizam of Hyderabad was the third Indianruler who did not accede to India before 15 August.Instead, he claimed an independent status and,encouraged by Pakistan, began to expand his armedforces. In November 1947, the Government of Indiasigned a standstill agreement with the Nizam,hoping that while the negotiations proceeded, thelatter would introduce representative governmentin the state. But the Nizam hoped to prolongnegotiations and in the meanwhile build up hismilitary strength and force India to accept hissovereignty. Meanwhile, there was rapid growthof the militant Muslim communal organization,Ittlihad ul Muslimin and its paramilitary wing, the


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Razakars with active official help by Nizam. As aresult of attacks by the Razakars and repression bythe state authorities, thousands of people fled thestate and took shelter in temporary camps in Indianterritory. The state Congress-led movement nowtook to arms. By then a powerful communist-ledpeasant struggle had developed in the Talanganaregion of the state from the latter half of 1946. On13 September, 1948, the Indian army moved intoHyderabad. The Nizam surrendered after threedays and acceded to the Indian Union in November.The government of India retained Nizam as formalruler of the state or its Rajpramukh, was given aprivy purse, and permitted to keep most of hiswealth.

In return for their surrender of all power andauthority, the rulers of major states were givenprivy purses in perpetuity, free of all taxes. Theprivy purse amounted to Rs. 4.66 crore in 1949and were later guaranteed by the constitution. Theruler were allowed succession to the gaddi andretained certain privileges such as keeping theirtitles, flying their personal flags and gun salutes onceremonial occasion. However, later Indira Gandhiabolished most of the above mentioned concessions.

After waiting patiently for international opinionto put pressure on Portugal, Nehru ordered Indiantroops to march into Goa on the night of 17December, 1961. The governor-General of Goaimmediately surrendered without a fight and theterritorial and political integration of India wascompleted.

FIRST INDO-PAKISTAN WAR (1947)

In the 18th century, Kashmir was ruled bythe Pashtun Durrani Empire. In 1819, Kashmir wasconquered by the Sikh ruler Ranjit Singh. Followingthe First Anglo-Sikh War in 1845 and 1846,Kashmir was first ceded by the Treaty of Lahore tothe East India Company, and shortly after sold bythe Treaty of Amritsar to Gulab Singh, Raja ofJammu, who thereafter was given the title Maharajaof Jammu and Kashmir. From then until thePartition of India in 1947, Kashmir was ruled bythe Hindu Maharajas of the princely stateof Kashmir and Jammu, although the majority ofthe population were Muslim, except in theJammu and Ladakh region.

PARTITION AND DISPUTE

In 1947, British rule in India ended with the

creation of a new state: the Dominion ofPakistan and a successor state to British India the Union of India, while British suzerainty overthe 562 Indian princely states ended. Accordingto the Indian Independence Act, 1947, "thesuzerainty of His Majesty over the Indian Stateslapses, and with it, all treaties and agreements inforce at the date of the passing of this Act betweenHis Majesty and the rulers of Indian States", so thestates were left to choose whether to join India orPakistan or to remain independent. Jammu andKashmir, the largest of the princely states, had apredominantly Muslim population, while having aHindu ruler, Maharaja Hari Singh. On partitionPakistan expected Kashmir to be annexed to it.

In October 1947, Muslim revolutionaries inwestern Kashmir and Pakistani tribals from Dir entered Kashmir, intending to eliminateDogra rule. Unable to withstand the invasion, theMaharaja signed the Instrument of Accession on 25October, 1947 that was accepted by the governmentof India on 27 October, 1947.

INDO-PAKISTANI WAR (1947)

After rumours that the Maharaja supported theannexation of Kashmir by India, militant Muslimrevolutionaries from western Kashmir and Pakistanitribesmen made rapid advances into the Baramulla sector. Maharaja Hari Singh of Kashmirasked the government of India to intervene.However, India and Pakistan had signed anagreement of non-intervention. Although tribalfighters from Pakistan had entered Jammu andKashmir, there was no iron-clad legal evidence tounequivocally prove that Pakistan was officiallyinvolved. It would have been illegal for India tounilaterally intervene in an open, official capacityunless Jammu and Kashmir officially joined theUnion of India, at which point it would be possibleto send in its forces and occupy the remainingparts.

The Maharaja desperately needed militaryassistance when the Pakistani tribals reached theoutskirts of Srinagar. Before their arrival intoSrinagar, India argued that the Maharaja mustcomplete negotiations for ceding Jammu andKashmir to India in exchange for receiving militaryaid. The agreement which ceded Jammu andKashmir to India was signed by the Maharajaand Lord Mountbatten. In Jammu and Kashmir,National Conference volunteers worked withthe Indian Army to drive out the Pakistanis.


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The resulting war over Kashmir, the FirstKashmir War, lasted until 1948, when India movedthe issue to the UN Security Council. SheikhAbdullah was not in favour of India seeking UNintervention because he was sure that the IndianArmy could free the entire State of invaders. TheUN had previously passed resolutions for settingup monitoring of the conflict in Kashmir. Followingthe set-up of the United Nations Commission forIndia and Pakistan (UNCIP), the UN SecurityCouncil passed Resolution 47 on 21 April, 1948.The resolution imposed an immediate cease-fire andcalled on the Government of Pakistan 'to securethe withdrawal from the state of Jammu andKashmir of tribesmen and Pakistani nationals notnormally resident therein who have entered thestate for the purpose of fighting.' It also askedGovernment of India to reduce its forces to theminimum strength, after which the circumstancesfor holding a plebiscite should be put into effect'on the question of Accession of the state to Indiaor Pakistan.' However, both India and Pakistanfailed to arrive at a Truce agreement due todifferences in interpretation of the procedure forand extent of demilitarization one of them beingwhether the Azad Kashmiri army is to be disbandedduring the truce stage or the Plebiscite stage.

In November 1948, The Indian and Pakistanigovernments agreed to hold the plebiscite, butPakistan did not withdraw its troops from Kashmir,thus violating the conditions for holding theplebiscite. In addition, the Indian Governmentdistanced itself from its commitment to hold aplebiscite. India proposed that Pakistan withdrawall its troops first, calling it a precondition for aplebiscite. Pakistan rejected on the grounds thatthe Kashmiris may not vote freely given the presenceof Indian army and Sheikh Abdullah's friendshipwith the Indian Prime Minister, Jawaharlal Nehru.However, Pakistan proposed simultaneouswithdrawal of all troops followed by a plebisciteunder international auspices, which Indiarejected. Hence Pakistan didn't withdraw its forcesunilaterally. Over the next several years, the UNSecurity Council passed four new resolutions,revising the terms of Resolution 47 to include asynchronous withdrawal of both Indian andPakistani troops from the region, per therecommendations of General Andrew McNaughton.To this end, UN arbitrators put forward 11different proposals for the demilitarization of theregion. All of these were accepted by Pakistan, butrejected by the Indian government. The resolutions

were passed by United Nations Security Councilunder Chapter VI of the United NationsCharter. Resolutions passed under Chapter VI ofthe UN charter are considered non-binding andhave no mandatory enforceability, as opposed tothe resolutions passed under Chapter VII.

MYTH OF NEHRU AND PATEL RIVALRY

Nehru and Vallabhbhai Patel were notopponents and adversaries. This myth is promotedby advocates of a ‘strong’ India, by those whobelieve that Nehru was soft on Pakistan, soft onChina, and soft on the minorities. It is usuallyaccompanied by a subsidiary myth, namely, thatPatel would have made a ‘better’ Prime Ministerthan Nehru. In truth, Nehru and Patel workedsuperbly as a team—who, in the first, formativeyears of independence, effectively united andstrengthened India. Of course, they differed bytemperament and ideology. But these differenceswere subsumed and transcended by commitmentto a common ideal: namely, a free, united, secularand democratic India. There were some thingsNehru could do better than Patel—communingwith the masses, relating to the world, assuringvulnerable groups (such as Muslims, tribals, andDalits) that they enjoyed equal rights with otherIndians. There were some things Patel could dobetter than Nehru—dealing with the princes,nurturing the Congress party, carrying alongdissidents in the Constituent Assembly. Each knewthe other’s gifts, each took care not to tresspass onthe other person’s turf. That is how, together, theybuilt India anew out of the ruins of Partition. Alongwith the Kashmir issue, an important sources ofconsent tension between the two countries was thestrong sense of insecurity among Hindus in EastBengal, fuelled primarily by the communalcharacter of Pakistan’s political system. This led tothe steady migrated of the persecuted Hindus fromEast Bengal to West Bengal an retaliatory attackson Muslim in West Bengal, leading to theirmigration. On 8 April, 1950, the Prime Ministers ofIndia and Pakistan signed an agreement known asthe Nehru-Liaqat pact to resolve the issue ofprotection of the minorities. The pact met with thestrong disapproval of the Hindu communalists andthe two ministers from Bengal, Syama PrasadMookerjee and K.C. Neogi, resigned from the cabinetin protest. This incident clearly demonstrates thatcommunalism has not only led to internal problemsbut our relations with neighboring countries havealso been effected by the scourge of communalism.

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MAKING OF THEMAKING OF THEMAKING OF THEMAKING OF THEMAKING OF THE

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India’s independence represented for its peoplethe start of an epoch that was imbued with a newvision. In 1947, the country commenced its longmarch to overcome the colonial legacy of economicunderdeveloped-prevalence of disease and starksocial inequality and injustice. 15 August, 1947 wasonly the first stop, the first break-the end of colonialpolitical control. Centuries of backwardness werenow to be overcome, the promises of the freedomstruggle to be fulfilled, and people’s hope to bemet.

The tasks of nation-building were taken up bythe Indian people and their leaders with a certainelan and determination and with confidence intheir capacity to succeed. Jawaharlal Nehru’sfamous ‘Tryst with Destiny’ speech on the eve ofindependence reflected this buoyant mood. Indiahas started off with a broad social consensus onthe basic contours of the India that was to be builton the values of nationalism, secularism anddemocracy. Rapid economic development andradical social change were other agreed on goals.These values and goals, and the road to theirachievement, had been mapped over more thanseventy years by the national movement.

AGREEMENT OVER BASIC GOALS

The first and the most important task was topreserve, consolidate and strengthen India’s unity,to push toward the process of the making of theIndian nation, and to build up and protect thenational state as an instrument of development andsocial transformation. Indian unity had to bestrengthened by recognizing and accepting India’simmense regional, linguistic, ethnic and religiousdiversity.

It was agreed that India's revolution had to betaken beyond the merely political to includeeconomic and social transformation. The socialscene also called for rapid transformation. Despitelower-caste movements in several parts of thecountry and Gandhiji’s campaign against untouch-ability society was under severe grip of socio-economic malaises. Male domination was still nearly

total and women suffered immense socialoppression in the family. Economic developmentand a democratic political order were to beaccompanied by rapid social transformation so thatexisting gross economic, caste and genderinequalities were rapidly eliminated, poverty wasremoved and the levels of living raised. Thestructure of Indian society was to be rapidlytransformed in a broadly socialist direction.

EVOLUTION OF THE CONSTITUTION

The national movement had arousedexpectations of a rapid rise in personal and societalprosperity of social and economic equity andequality of the good life. Indira Gandhi’s slogan of‘Garibi Hatao’ in 1971 further fuelled theseexpectations as did the process of continuouspoliticization since 1950. The constantly risingaspiration and expections had to be fulfilled asrapidly as possible and without letting too wide agap develop between expectations and fulfillment.At the same time, political stability had to beensured for the accomplishment of all the tasks.The political system had to combine stability withgrowth, social transformation and deepening of thepolitical process. The Indian revolution had to begradual, non-violent and based on political stability,but it had to be a revolution all the same. First actof this revolution was to be the evolution of aconstitution as per India needs.

National movement has popularized among thepeople the notions of parliamentary democracy,republicanism, civil liberties, social and economicjustice, which became among the essentialprinciples of constitution.

The actual functioning of the Congressorganization, especially from 1920 onwards, afterGandhiji modified the Congress constitution, wasbased on the elective principle. All office-bearerswere chosen through election. Even more than theform, it was the spirit of democracy, on which inthe last and first resort the foundations of theconstitution rest, which was inculcated among thepeople by the national movement. This found


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expression in widespread mass participation. Itensured a place for adult franchise afterindependence. Age for the same was reduced from21 years to 18 years during time of Rajiv Gandhi.

Elective principle was first introduced by theBritish in the Indian Councils Act of 1892. TheCongress and its nationalist precursors and theIndian Press, had been demanding elections to thecouncils, elected majorities in them and greaterpowers to the non-official members of councils formany years before that. Nationalist demands hadalready far exceeded what was granted in 1892.National movement by the end of the second decadeof the twentieth century had begun to espouse thedoctrine of self-determination or the right of Indiansto frame their own constitution.

Tilak and Annie Besant had launched a HomeRule agitation. The Congress-Muslim Leaguescheme for constitutional reforms emerged out ofthe Congress League Pact of 1916. A veryprominent role was played by Motilal Nehru, whointroduced resolution on February 8, 1924 in theCentral Legislative Assembly which asked thegovernment to summon at an early date, a repre-sentative Round Table Conference to recommendwith due regard to the protection of the rights andinterests of important minorities and the scheme ofa constitution for India. This was the first time thatthe demand for a constitution and the procedurefor its adoption were spelt out in clear terms.

This resolution, which came to be known asthe ‘National Demand’, was passed by a largemajority in the central Legislative Assembly- 76 forand 48 against. In May 1928, Congress appointeda committee chaired by Motilal Nehru to determinethe principles of the constitution for India. TheNehru Report, submitted on August 10, 1928 wasin effect an outline of a draft constitution for India.Most of its features were later included in theConstitution of India. The demand for aConstituent Assembly was repeated frequently after1934 and included in the Congress manifesto forthe 1936-37. In 1937, a resolution recommendingreplacement of the Government of India Act, 1935by a constitution framed by a Constituent Assemblywas introduced in the Central Legislative Assembly.

The ‘August Offer’ made by Viceroy Linlithgowin 1940 in an attempt to secure Indian cooperationin the war effort for the first time conceded thatthe framing of new constitution should be primarilythe responsibility of Indian themselves. The Crippsproposals were a major advance in the position of

the British government. For the first time, it wasclearly accepted that the constitution would be thesole responsibility of Indians alone. On February19, 1946, the British government declared that theywere sending a Cabinet Mission to India to resolvethe whole issue of freedom and constitution making.The Congress responded to the Cabinet MissionScheme by pointing out that in its view theconstituent Assembly, once it came into being,would be sovereign. It would have the right toaccept or reject the Cabinet Mission’s proposal onspecific lines. Though an assurance on those lineswas not forthcoming from the British, the Congressnevertheless decided after a great deal of debate toaccept the scheme and try to work it, as there wasa feeling that outright rejection would again delaythe process of transfer of power. The Muslim Leaguecontinued to oppose the Constituent Assembly atevery stage, before as well as after it wasconstituted.

THE CONSTITUENT ASSEMBLY

The Constituent Assembly was to have 389members. Of these, 296 were to be from BritishIndia and 93 from the princely Indian states.Initially, however, the Constituent Assemblycomprised only members from British India.Elections of these were held in July-August 1946.Of the 210 seats in the general category, congresswon 199. It also won 3 out of 4 Sikh seats fromPunjab. The total Congress tally was 208. TheMuslim League won 73 out of the 78 Muslim seats.Especially since the Constituent Assembly was notelected on the basis of universal adult franchiseand was thus not as truly representative incharacter as the Congress had wished anddemanded and also because only Muslims andSikhs were recognized as minorities deservingspecial representation, special effort was made tosee that the Assembly did indeed reflect the diversityof perspectives present in the country.

The Congress Working Committee in early July1946 specifically instructed the Provincial CongressCommittees to include representatives of ScheduledCastes, Parsis, Indian Christians, Anglo-Indians,tirbals and women in the Congress list for thegeneral category. The other important conside-ration in choosing names for election to theAssembly was that the very best talent available inthe country must be involved in the task of themaking of the constitution. The lead was given byGandhiji himself who suggested the names of


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sixteen eminent persons for inclusion in theCongress list. Altogether thirty people who werenot members of the Congress were thus elected onthe Congress ticket. Having failed to prevent theelection of the Constituent Assembly, the MuslimLeague now concentrated its energies on refusingto join its deliberations.

The Congress and Jawaharlal Nehru asPresident of the interim government continued tomake conciliatory gestures to Muslim League, butto no avail. Accordingly, on November 20, 1946,the decision to convene the first session of theConstituent Assembly on December 9, 1946 wasannounced. At Nehru’s insistence, the oldestmember of the Assembly, Dr. Sachchidanand Sinha,became the provisional president and invitationswere issued in the name of the secretary of theConstituent Assembly. In doing this Nehru wasestablishing for all to see, the independence of theAssembly from British control. On December 9,1946, the Constituent Assembly of India began itsfirst session. For all practical purposes, the chronicleof Independent India began on that historic day.

The real responsibility of deciding theconstitutional framework within which the govern-ment and people of India were to function hadbeen transferred and assumed by the Indian peoplewith the convening of the Constituent Assembly.The first session was attended by 207 members.The Muslim League, having failed to prevent theconvening of the Assembly, now refused to join itsdeliberations. Consequently, the Seventy six Muslimmembers of the League stayed away and the fourCongress Muslim members attended this session.On December 11, 1946, Dr. Rajendra Prasad waselected the permanent Chairman, an office laterdesignated as President of the Assembly OnDecember 13, 1946. Jawaharlal Nehru moved thefamous Objectives Resolution, which was debatedtill December 19 but its adoption was postponed toenable the represen-tatives of the Muslim Leagueand the princely states to join.

At the next session, which took place fromJanuary 20-22, 1947, it was decided to not waitany longer for the League, and the ObjectivesResolution was passed. The third session was heldfrom April 18 to May 2, 1947 and the League stilldid not join. On June 3, 1947, the MountbattenPlan was announced which made it clear that Indiawas to be partitioned. The completely altered theperspective of the Constituent Assembly, as theCabinet Mission Plan, the essence of which was

Compromise with the league, was no largerrelevant. With India becoming independent onAugust 15, 1947, the Constituent Assembly becamea sovereign body, and also doubled as thelegislature for the new state. It was responsible forframing the constitution as well as making ordinarylaws. That its function as a legislature as well as itslarge size did not come in the way of its effectivelyperforming it duties as a constitution making bodyis due to the enormous preparatory work as wellas organizational skills and hardwork of its leadingmembers.

The work was organized into five stages:Committees were asked to present reports on basicissues; B.N. Rau, the constitutional advisor,prepared an initial draft on the basis of the reportsof these committees and his own research into theconstitutions of other countries; The draftingcommittee, chaired by Dr. B.R. Ambedkar,presented a detailed draft Constitution which waspublished for public discussion and comments; Thedraft Constitution was discussed and amendmentsproposed; and The constitution was adopted.

In addition, a critical role was played byCongress party. It had asked a committee of expertsto prepare material and proposals for theconstitution as early as July 4, 1946. The committeewas chaired by Nehru and had Asaf Ali, K.T. Shah,D.R. Gadgil, K.M. Munshi, Humayun Kabir, R.Shanthanam and N. Gopalaswamy Ayyangar asmembers.

On 13 December, 1946, Jawaharlal Nehruintroduced the vision of the Constitution-“Objectives Resolution” in the ConstituentAssembly. It was a momentous resolution thatoutlined the defining ideals of the Constitution ofIndependent India, and provided the frameworkwithin which the work of constitution-making wasto proceed. It proclaimed India to be an“Independent Sovereign Republic”, guaranteed itscitizens justice, equality and freedom, and assuredthat “adequate safeguards shall be provided forminorities, backward and tribal areas, andDepressed and Other Backward Classes…” Afteroutlining these objectives, Nehru placed the Indianexperiment in a broad historical perspective. As hespoke, he said, his mind went back to the historicefforts in the past to produce such documents ofrights. In returning to the past and referring to theAmerican and French Revolutions, Nehru waslocating the history of constitution-making in Indiawithin a longer history of struggle for liberty and


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freedom. The momentous nature of the Indianproject was emphasised by linking it torevolutionary moments in the past. But Nehru wasnot suggesting that those events were to provideany blueprint for the present; or that the ideas ofthose revolutions could be mechanically borrowedand applied in India. He did not define the specificform of democracy, and suggested that this had tobe decided through deliberations. And he stressedthat the ideals and provisions of the constitutionintroduced in India could not be just derived fromelsewhere. “We are not going just to copy”, hesaid. The system of government established in India,he declared, had to “fit in with the temper of ourpeople and be acceptable to them”. It was necessaryto learn from the people of the West, from theirachievements and failures, but the Western nationstoo had to learn from experiments elsewhere, theytoo had to change their own notions of democracy.The objective of the Indian Constitution would beto fuse the liberal ideas of democracy with thesocialist idea of economic justice, and re-adapt andrework all these ideas within the Indian context.Nehru’s plea was for creative thinking about whatwas appropriate for India.

The Constituent Assembly had 300 members.Of these, six members played particularly importantroles.Three were representatives of the Congress,namely, Jawaharlal Nehru, Vallabh Bhai Patel andRajendra Prasad. It was Nehru who moved thecrucial “Objectives Resolution” which spelt out thephilosophy and basic features of the constitution,as well as the resolution proposing that the NationalFlag of India be a “horizontal tricolour of saffron,white and dark green in equal proportion”, with awheel in navy blue at the centre set a formidableexample by his keen involvement in every aspectof the process. Patel, on the other hand, workedmostly behind the scenes, playing a key role in thedrafting of several reports, and working to reconcileopposing points of view. Sardar Patel’s interest wassecond, if at all, only to Nehru’s. He played thedecisive part in bringing in the representatives ofthe erstwhile princely states into the ConstituentAssembly, in seeing to it that separate electorateswere eliminated and in scotching any move forreservation of seats for religions minorities.Rajendra Prasad’s role was as President of theAssembly, where he had to steer the discussionalong constructive lines while making sure allmembers had a chance to speak. Rajendra Prasadwon acclaim for his impartiality and dignity asPresident of the Assembly. Maulana Azad brought

his formidable scholarship and philosophical mindto bear on many issues of grave importance.Informed by a strong sense of its historic role inlaying the foundations of independent India, theCongress party tried hard to do its best by thepeople it had led to freedom.

Besides these Congress leaders, a very importantmember of the Assembly was the lawyer andeconomist, B.R. Ambedkar. During the period ofBritish rule, Ambedkar had been a politicalopponent of the Congress; but, on the advice ofMahatma Gandhi, he was asked at Independenceto join the Union Cabinet as law minister.Ambedkar himself had the responsibility of guidingthe Draft Constitution through the Assembly. Inthis capacity, he served as Chairman of the DraftingCommittee of the Constitution. Serving with himwere two other lawyers, K.M. Munshi from Gujaratand Alladi Krishnaswamy Aiyyar from Madras,both of whom gave crucial inputs in the draftingof the Constitution. These six members were givenvital assistance by two civil servants. One was B.N.Rau, Constitutional Advisor to the Government ofIndia, who prepared a series of background papersbased on a close study of the political systemsobtaining in other countries. The other was theChief Draughtsman, S.N. Mukherjee, who had theability to put complex proposals in clear legallanguage.

This took three years in all, with the printedrecord of the discussions taking up eleven bulkyvolumes. But while the process was long it wasalso extremely interesting. The members of theConstituent Assembly were eloquent in expressingtheir sometimes very divergent points of view. Intheir presentations we can discern many conflictingideas of India – of what language Indians shouldspeak, of what political and economic systems thenation should follow, of what moral values itscitizens should uphold or disvow.

Between December 1946 and November 1949,some three hundred Indians had a series ofmeetings on the country’s political future. Themeetings of this “Constituent Assembly” were heldin New Delhi, but the participants came from allover India, and from different political parties.These discussions resulted in the framing of theIndian Constitution, which was adopted on 26January, 1950.

Hammered out during intense debates in aconstituent assembly which sat from 1947 to 1949,India’s constitution established a set of principles


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and institutions that have governed the country’spolitical life upto the present. Under it, as Nehrusought to create a ‘modern’ free India, the countrydecisively repudiated much of its colonial heritage.Although remaining a member of the Common-wealth, India was proclaimed a republic, thusending its allegiance to the British Crown, whenthe constitution was inaugurated. That date, 26January, known as Republic Day, with a massiveparade in New Delhi, has remained a major focusfor India’s celebration of its nationhood. Rejectingthe imperial vice-regal style of governmentassociated with the Raj, the new India neverthelesssought inspiration in domestic British politicalpractice. The constitution put in place a Westminsterstyle of government, with a parliament comprisingtwo houses, and a prime minister selected by themajority party in the lower house, called the LokSabha or House of the People. Nehru took up theposition of prime minister, while the president,installed in the old vice-regal palace, acted, like thesovereign in Britain, as titular head of state. Theold colonial separate electorates, with their divisivetendencies, were in similar fashion abolished infavour of single member constituencies, modelledon those in Britain itself, open to all.

Elements of the old colonial style of governancenevertheless persisted under the new order. Some200 articles of the Government of India Act of 1935,for instance, were incorporated into the newconstitution. The federal structure, in which powerwas shared between the centre and the formerprovinces, now become states, remained intact. Sotoo, significantly, did the provision of the 1935 Actwhich awarded the provincial governor, andpresident, imperial-style power to set aside electedministries in times of emergency. These powers wereoften employed in independent.

India to intimidate recalcitrant state govern-ments, and, in one exceptional instance, to facilitatea period of authoritarian ‘emergency’ rule through-out the country. In addition, the administrativestructure of the Indian Civil Service, renamed theIndian Administrative Service, remained in place.This ‘steel frame’, its British members replaced byIndians trained in the same spirit of impartialgovernance, was seen, in the tumultuous years afterindependence, as a necessary bulwark of stabilityfor the new government. One American ideaincorporated in the new constitution was that of aSupreme Court with powers of judicial review oflegislation. At no time did the constituentassembly ever consider instituting a Gandhian-

styled nonparty government, with a weak centreand power diffused among self-governing villages.The new India was not to be modelled on a visionof its ancient past.

All were agreed that the new India must bea democratic land, with universal suffrageand freedom of press and speech. Troubled,however, by the persisting discrimination against‘untouch-ables’ and other disadvantaged groups,the Congress Party took steps to insure that thesegroups had a voice in the new constitutional order.One was the appointment of the distinguished‘untouchable’ leader Dr. B.R. Ambedkar to chairthe drafting committee for the constitution.

Since their tense stand-off over the CommunalAward in 1932, Ambedkar, a graduate of ColumbiaUniversity in New York, had never been reconciledwith Gandhi. Calling Hinduism a ‘veritablechamber of horrors’, he had argued that allGandhism had done was to ‘smoothen its surfaceand give it the appearance of decency andrespectability’. Before his death in 1956, Ambedkarconverted to Buddhism. The new constitution itselfoutlawed untouchability, but of greater importanceover the long term was the reservation of seats inthe legislatures for the former untouchables, andwith them the depressed forest tribes. These groupswere listed on a special schedule in the constitution,and so became known as ‘Scheduled Castes andTribes’. The members of these castes stood forelection in regular constituencies where they alonewere allowed to be candidates.

In this way the state avoided the use of colonial-style separate electorates, but secured ‘untouchable’inclusion in the legislature. Their presence offeredvisible evidence of the state’s concern for the welfareof their communities. As time went on, as we shallsee, these reservations grew to include preferentialaccess to educational institutions and theadministrative services, while the existence of suchbenefits for the ‘scheduled’ castes inspired other‘backward’ classes to demand similar treatment.

The Congress Party under Nehru’s leadershipwas committed as well to the principles ofsecularism and socialism. Despite the predominanceof Hindus among its membership, the Congress hadalways proclaimed itself a secular organization, andNehru was determined that India should be asecular state. In the 1940s and 1950s, especially inthe wake of partition and Gandhi’s assassination,this principle encountered little overt opposition.Nehru took care to disassociate the state both from


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religion and from the Congress itself, by, forinstance, such measures as installing the lion capitalof the Buddhist ruler Asoka as the central deviceon the country’s flag and currency instead ofadopting a Hindu icon or even the Gandhianspinning wheel which adorned the Congress’s Partyflag. By contrast with its American variant, whichsought to impose a ‘wall’ between church and state,Indian secularism sought to engage with, and sosustain, all of India’s various religions. This form ofsecularism, with its communally based schools andcodes of law, was hard to put into practice.Furthermore, the policy encouraged a persistingallegiance to ‘community’ at odds with the indivi-dualism of a democratic polity. The constitutionfurther enshrined among its directive principles,not only the fundamental right of private property,but a commitment to economic justice, defined asdistributing the material resources of the countryin such a way as to promote the common goodand an equitable sharing of wealth.

The Constitution of India came into force on 26January, 1950. Since then, the day is celebrated asRepublic Day. However, before 1950, 26 Januarywas called Independence Day. Since 26 January,1930, it was the day on which thousands of people,in villages, in mohallas, in towns, in small and biggroups would take the independence pledge,committing themselves to the complete indepen-dence of India from British rule. It was only fittingthat the new republic should come into being onthat day, marking from its very inception thecontinuity between the struggle for independenceand the adoption of the Constitution that madeIndia a Republic.

Democracy took a giant step forward with thefirst general election held in 1951-52 over a four-month period. These elections were the biggestexperiment in democracy anywhere in the world.The elections were held based on universal adultfranchise, with all those twenty-one years of ageor older having the right to vote. There were over173 million voters, most of them poor, illiterate,and rural, and having had no experience ofelections. The big question at the time was howwould the people respond to this opportunity.

Many were skeptical about such an electoratebeing able to exercise its right to vote in a politically

mature and responsible manner. Some said thatdemocratic elections were not suited to a caste-ridden, multi-religious, illiterate and backwardsociety like India's and that only a benevolentdictatorship could be effective politically in such asociety. The coming elections were described bysome as 'a leap in the dark' and by others as'fantastic' and as 'an act of faith.' India's electoralsystem was developed according to the directivesof the Constitution. The Constitution made aprovision for an Election Commission. It was to beheaded by a Chief Election Commissioner, toconduct elections. It was to be independent of theexecutive or the parliament or the party in power.

Organization of the elections was a wondroustask. There was a house-to-house survey to registerthe voters. With over 70 per cent of the voters beingilliterate, the candidates were to be identified bysymbols, assigned to each major party andindependent candidates, painted on the ballot-boxes(this was later changed to symbols on the ballotpapers). The voters were to place the ballot papersin the box assigned to a particular candidate, andballot was secret. Over 224,000 polling booths, onefor almost every 1000 voters, were constructed andequipped with over 21/2 million steel ballot-boxes,one box for every candidate. Nearly 620,000,000ballot papers were printed. About a million officialssupervised the conduct of the polls. Of the manycandidates, whoever got the plurality, or the largestnumber of votes would be elected. It was notnecessary for the winning candidate to have amajority.

In all, candidates of over fourteen national andsixty-three regional or local parties and a largenumber of independents contested 489 seats forthe Lok Sabha and 3,283 seats for the stateassemblies. Of these, 98 seats for the former and669 for the latter were reserved for the ScheduledCastes and the Scheduled Tribes. Nearly 17,500candidates in all stood for the seats to the LokSabha and the state legislatures. The elections werespread out over nearly four months from 25October, 1951 to 21 February, 1952.

Suitable conditions were created for the freeparticipation of the opposition parties in theelections, including Jan Sangh and CPI. TheOpposition was, however, quite fragmented.

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THE NEHRU ERATHE NEHRU ERATHE NEHRU ERATHE NEHRU ERATHE NEHRU ERA

(1947-1964)(1947-1964)(1947-1964)(1947-1964)(1947-1964)CHRONICLEIAS ACADEMYA CIVIL SERVICES CHRONICLE INITIATIVE

Jawaharlal Nehru was the first Prime Ministerof India. His Prime-Ministership was marked bysocial and economic reforms of the Indian state. Anumber of foreign policy landmarks like thefounding of the Non-Aligned Movement alsomarked the tenure of Jawaharlal Nehru as PrimeMinister.

Jawaharlal Nehru became Prime Minister onthe 15th of August, 1947. His ascension wasplagued by controversy and a bitter power strugglewithin the Congress Party. The internal struggle ofthe party was symptomatic of the larger strugglewithin the Indian Republic itself. The initial periodof Jawaharlal Nehru as Prime Minister was markedby communal violence.

Jawaharlal Nehru was forced to concede thecreation of Pakistan as per the wishes of the MuslimLeague leader the leadership of Muhammad AliJinnah. Communal violence enveloped the entirecountry during this period. Maximum bloodshedwas witnessed in the national capital Delhi. TheIndian states of Punjab and West Bengal alsowitnessed fierce bloodshed.

The first Prime Minister tried to defuse theexplosive situation by visiting the violence affectedareas. He toured the riot stricken areas withPakistani leaders to reassure those affected by theviolence. Nehru promoted peace in Punjab duringthat momentous period in Indian history. Thesecular nature of Jawaharlal Nehru was bestexemplified during those times. He took active stepsto safeguard the status of Indian Muslims.

India held its first national elections under theConstitution in 1952, where a turnout of over 60%was recorded. The National Congress Party wonan overwhelming majority, and Jawaharlal Nehrubegan a second term as Prime Minister. PresidentPrasad was also elected to a second term by theelectoral college of the first Parliament of India.

NEHRU ADMINISTRATION (1952–1964)

The 1951-52 election swept the Congress Partyinto power at national and state levels alike. In the

new Lok Sabha the party won 364 of the 489 seats.This electoral victory, capitalizing as it did uponthe appeal of the Congress as the party that hadbrought independence to India, and wrapping itselfin the saintly legacy of the martyred MahatmaGandhi, was hardly surprising. Support for theCongress was, however, by no means universal.Indeed, of the votes cast, the Congress secured onlysome 45 per cent. The remainder was split amongstan array of opposition parties, rightist, leftist, andregional, pushed to the margins by Congress’sdomination of the political centre. This disjuncturebetween the Congress Party’s limited popularappeal, and its domination of the legislature, wasto be a feature of Indian politics for decades tocome.

The first two decades of India’s independencecan aptly be characterized as the age of Nehru.Several elements together shaped the political lifeof the country through the 1950s and into the1960s. These include a politics of brokerage, acommitment to economic development, and astruggle to contain fissiparous linguistic regionalism.

All were knitted together by Nehru’s comm-anding presence. Forced for the first years of hisrule to share power with the imperious SardarVallabhbhai Patel, after Patel’s death in 1950 Nehrusuccessfully turned back the sole remainingchallenge to his authority, that of Purushottam DasTandon at the head of the Congress WorkingCommittee. From then on until his death in 1964,Nehru was unchallenged master of the Indianscene. Operating from a position of unquestionedstrength, but never ruthless or vindictive, Nehruimpressed his will upon the administrative services,the military, and the legislature. Nehru representedthe newly independent India to itself, as well asto the world at large.

Prime Minister Nehru, with his charismaticbrilliance, led the Congress to major electionvictories in 1957 and 1962. The Parliament passedextensive reforms that increased the legal rights ofwomen in Hindu society, and further legislatedagainst caste discrimination and untouchability.Nehru advocated a strong initiative to enroll India's


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children to complete primary education, andthousands of schools, colleges and institutions ofadvanced learning, such as the Indian Institutes ofTechnology were founded across the nation. Nehruadvocated a socialist model for the economy ofIndia — no taxation for Indian farmers, minimumwage and benefits for blue-collar workers, andthe nationalisation of heavy industries such as steel,aviation, shipping, electricity and mining. Anextensive public works and industrializationcampaign resulted in the construction of majordams, irrigation canals, roads, thermal andhydroelectric power stations.

STATES REORGANIZATION

Demand of states on linguistic basis wasdeveloped even before independence of India underBritish rule. Though that time Indian admini-strative regions were identified as differentprovinces. Odisha was the first Indian state formedon linguistic basis in the year 1936 due to the effortsof Madhusudan Das and became Orissa Province.In Odisha, linguistic movement started in the year1895 and intensified later years with the demandof separate province from Bihar and OrissaProvince.

The reorganization of the states based onlanguage, a major aspect of national consolidationand integration, came to the fore almost immediatelyafter independence. The boundaries of provincesin pre-1947 India had been drawn in a haphazardmanner as the British conquest of India hadproceeded for nearly a hundred years. No heedwas paid to linguistic or cultural cohesion so thatmost of the provinces were multi-lingual and multi-cultural. The interspersed princely states had addeda further element of heterogeneity.

The case for linguistic states as administrativeunits was very strong. Language is closely relatedto culture and therefore to the customs of people.Besides, the massive spread of education andgrowth of mass literacy can only occur throughthe medium of the mother tongue. After indepen-dence, the demand for the reorganization of stateson linguistic basis was raised from different regions.The Constitution Assembly appointed S.K. DharCommission in Nov. 1947 to study the issue ofreorganization of States on linguistic basis. Thecommission in its report, submitted in 1948,recommended against the organization of statespurely on linguistic basis. Instead, the commissionsuggested the following criteria alongwith

language- Geographical contiguity, Financial self-reliance, Administrative viability and Potential fordevelopment.

The Congress, in its Jaipur session in 1948,appointed a three member committee to considerthe recommendations of Dhar Commission.The Committee is popularly known as JVPCommittee after the name of its three members –Jawaharlal Nehru, Vallabh Bhai Patel, and PattabhiSitarammaiah. The committee rejected language asthe basis of reorganization of states. It suggestedthat the security, unity and economic prosperity ofthe nation as the criteria of reorganization.The Congress Working Committee accepted itsrecommendation in 1949.

Potti Sreeramulu's fast-unto-death, andconsequent death for the demand of an AndhraState in 1953 sparked a major re-shaping of theIndian Union. In December 1953, Prime MinisterJawaharlal Nehru appointed the States Reorgani-zation to reorganize the Indian states. This washeaded by the retired chief Justice of supreme courtFazal Ali and the commission itself was also knownas the Fazal Ali Commission. The other twomembers of the commission were Mr. Hridaynathand Mr. K.M. Panikkar. The efforts of thiscommission were overseen by Govind Ballabh Pant,who served as Home Minister from December 1954.The commission created a report on September 30,1955 recommending the reorganization of India'sstates. The parliament debated on the report. Someof the important recommendations of theCommission were:

(i) The Indian Union was to consist of 16 Statesas against the existing 27 and three centrallyadministered territories.

(ii) Special safeguards were recommended forlinguistic minorities.

(iii) In the interests of national unity and goodadministration, the Commission—recom-mended the reconstitution of certain AllIndia Services. It further recommended thatat least 50 per cent of the new entrants tothe All India Services and at least one thirdof the number of Judges in a High Courtshould consist of persons recruited fromoutside that State so that, administrationmight inspire confidence and help inarresting parochial trends.

(iv) The Commission put emphasis on the needfor encouraging the study of Indianlanguages other than Hindi but, for some


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time to come, English continue to occupyan important place in the universities andinstitutions of higher learning.

(v) The Commission rejected the demand forthe creation of a Punjabi Speaking State(Punjabi Suba) because “the creation of sucha state will solve neither the language northe communal problem”.

Finally, a bill making changes in the constitutionand reorganizing states was passed and wasimplemented from November 1, 1956. The StatesReorganization Act was enacted on 31 August,1956. Before it came into effect on 1 November, animportant amendment to the Constitution was alsoenacted; this amendment (the Seventh) was timedto come into force on the same day.

Under the Seventh Amendment, the existingdistinction among Part A, Part B, Part C, and PartD states was abolished. The distinction betweenPart A and Part B states was removed, becomingknown simply as "states". A new type of entity,the union territory, replaced the classification as aPart C or Part D state. It provided for fourteenstates and six centrally administered territories. TheTelengana area of Hyderabad state was transferredto Andhra; merging the Malabar district of the oldMadras Presidency with Travancore-Cochincreated Kerala. Certain Kannada-speaking areasof the states of Bombay, Madras, Hyderabad andCoorg were added to the Mysore state. Mergingthe states of Kutch and Saurashtra and the Marathi-speaking areas of Hyderabad with it enlargedBombay state. But two of the most sensitive area,Bombay and Punjab, were not reorganized onlinguistic basis. The demands for separate tribalstates, including Jharkhand and Nagaland, werealso bypassed.

ECONOMIC POLICIES

Nehru implemented policies based on importsubstitution industrialization and advocateda mixed economy where the government cont-rolled public sector would co-exist with the privatesector. He believed that the establishment of basicand heavy industry was fundamental to thedevelopment and modernization of the Indianeconomy. The government therefore directedinvestment primarily into key public sectorindustries – steel, iron, coal, and power – promotingtheir development with subsidies and protectionistpolicies. The policy of non-alignment duringthe Cold War meant that Nehru received financial

and technical support from both power blocs inbuilding India's industrial base from scratch. Steelmill complexes were built at Bokaro and Rourkela with assistance from the Soviet Union andWest Germany.

Five-Year Plans (FYPs) are centralized andintegrated national economic programs and wereimplemented immediately after independence undersocialist influence of first Prime Minister JawaharlalNehru. The Planning Commission was set up inMarch 1950. The main objective of the Governmentwas to promote a rapid rise in the standard ofliving of the people by efficient exploitation of theresources of the country increasing production andoffering opportunities to all for employment in theservice of the community. The Planning Commi-ssion was charged with the responsibility of makingassessment of all resources of the country,augmenting deficient resources, formulating plansfor the most effective and balanced utilization ofresources and determining priorities. The firstIndian Prime Minister, Jawaharlal Nehru presentedthe first five-year plan to the Parliament of Indiaon December 8, 1951. This plan was based on theHarrod-Domar model.

The First Five-Year Plan was one of the mostimportant because it had a great role in thelaunching of Indian development after theIndependence. Thus, it strongly supportedagriculture production and it also launched theindustrialization of the country (but less than theSecond Plan, which focused on heavy industries).It built a particular system of mixed economy, witha great role for the public sector (with anemerging welfare state), as well as a growingprivate sector (represented by some personalitiesas those who published the Bombay Plan).

The total planned budget of Rs. 2069 crore wasallocated to seven broad areas: irrigation andenergy (27.2%), agriculture and community deve-lopment (17.4%), transport and communications(24%), industry (8.4%), social services (16.64%),land rehabilitation (4.1%), and for other sectorsand services (2.5%). The most important feature ofthis phase was active role of state in all economicsectors. Such a role was justified at that timebecause immediately after independence, India wasfacing basic problems—deficiency of capital andlow capacity to save.

The target growth rate was 2.1% annual grossdomestic product (GDP) growth; the achievedgrowth rate was 3.6% the net domestic product


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went up by 15%. The monsoon was good and therewere relatively high crop yields, boosting exchangereserves and the per capita income, which increa-sed by 8%. National income increased more thanthe per capita income due to rapid populationgrowth. Many irrigation projects were initiatedduring this period, including the Bhakra Dam andHirakud Dam. The World Health Organization(WHO), with the Indian government, addressedchildren's health and reduced infant mortality,indirectly contributing to population growth.

At the end of the plan period in 1956,five Indian Institutes of Technology (IITs) werestarted as major technical institutions. TheUniversity Grant Commission (UGC) was set up totake care of funding and take measures tostrengthen the higher education in the country.Contracts were signed to start five steel plants,which came into existence in the middle of theSecond Five-Year Plan. The plan was quasisuccessful for the government.

The Second Plan, particularly in the develop-ment of the public sector. The plan followedthe Mahalanobis model, an economic development model developed by the Indian statistician PrasantaChandra Mahalanobis in 1953. The plan attemptedto determine the optimal allocation of investmentbetween productive sectors in order to maximiselong-run economic growth. It used the prevalentstate of art techniques of operations research andoptimization as well as the novel applications ofstatistical models developed at the Indian StatisticalInstitute. The plan assumed a closed economy inwhich the main trading activity would be centredon importing capital goods.

Hydroelectric power projects and five steelplants at Bhilai, Durgapur, and Rourkela wereestablished. Coal production was increased.More railway lines were added in the northeast.

The Tata Institute of Fundamental Research wasestablished as a research institute. In 1957, a talentsearch and scholarship program was begun to findtalented young students to train for work in nuclearpower.

The total amount allocated under the SecondFive-Year Plan in India was Rs.48 billion. Thisamount was allocated among various sectors: powerand irrigation, social services, communications andtransport, and miscellaneous. The target growth ratewas 4.5% and the actual growth rate was 4.27%.

There was substantial industrial development.

Industry grew 7.0 per cent annually between 1950and 1965 – almost trebling industrial output andmaking India the world's seventh largest industrialcountry. Nehru's critics, however, contended thatIndia's import substitution industrialization, whichwas continued long after the Nehru era, weakenedthe international competitiveness of its manufac-turing industries. GDP and GNP grew 3.9 and 4.0per cent annually between 1950–51 and 1964–65. Itwas a radical break from the British colonial period.But, in comparison to other industrial powers inEurope and East Asia, the growth rates wereconsidered anaemic at best. India lagged behindthe miracle economies (Japan, West Germany,France, and Italy). State planning, controls, andregulations were argued to have impaired economicgrowth. While India's economy grew faster thanboth the United Kingdom and the United States–low initial income and rapid population increase–meant that growth was inadequate for any sort ofcatch-up with rich income nations.

AGRICULTURE POLICIES

Under Nehru's leadership, the governmentattempted to develop India quickly by embarkingon agrarian reform and rapid industrialization. Asuccessful land reform was introduced thatabolished giant landholdings, but efforts toredistribute land by placing limits on landownershipfailed. Attempts to introduce large-scale cooperativefarming were frustrated by landowning rural elites,who formed the core of the powerful right-wing ofthe Congress and had considerable political supportin opposing the efforts of Nehru. Agriculturalproduction expanded until the early 1960s, asadditional land was brought under cultivation andsome irrigation projects began to have an effect.The establishment of agricultural universities,modelled after land-grant colleges in the UnitedStates, contributed to the development of theeconomy. These universities worked with high-yielding varieties of wheat and rice, initiallydeveloped in Mexico and the Philippines, that inthe 1960s began the Green Revolution, an effort todiversify and increase crop production. At the sametime a series of failed monsoons would cause seriousfood shortages despite the steady progress andincrease in agricultural production.

SOCIAL POLICIES

Jawaharlal Nehru was a passionate advocateof education for India's children and youth,


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believing it essential for India's future progress. Hisgovernment oversaw the establishment of manyinstitutions of higher learning, including the AllIndia Institute of Medical Sciences, the IndianInstitutes of Technology, the Indian Institutes ofManagement and the National Institutes ofTechnology. Nehru also outlined a commitment inhis five-year plans to guarantee free andcompulsory primary education to all of India'schildren. For this purpose, Nehru oversaw thecreation of mass village enrollment programmes andthe construction of thousands of schools. Nehrualso launched initiatives such as the provision offree milk and meals to children to fight malnutrition.Adult education centres, vocational and technicalschools were also organized for adults, especiallyin the rural areas.

Under Nehru, the Indian Parliament enactedmany changes to Hindu law to criminalise castediscrimination and increase the legal rights andsocial freedoms of women. A system of reservationsin government services and educational institutionswas created to eradicate the social inequalities anddisadvantages faced by peoples of the scheduledcastes and scheduled tribes. Nehru also championedsecularism and religious harmony, increasing therepresentation of minorities in government.

Most notably, Nehru allowed Muslims to keeptheir personal law in matters relating to marriageand inheritance. Also in the small state of Goa, acivil code based on the old Portuguese Family Lawswas allowed to continue, and Muslim Personal lawwas prohibited by Nehru. This was the result ofthe annexation of Goa in 1961 by India, whenNehru promised the people that their laws wouldbe left intact. This has led to accusations of selectivesecularism.

While Nehru exempted Muslim law fromlegislation and they remained un-reformed, he didpass the Special Marriage Act in 1954. The ideabehind this act was to give everyone in India theability to marry outside the personal law under acivil marriage. As usual the law applied to all ofIndia, except Jammu and Kashmir (again leadingto accusations of selective secularism). In manyrespects, the act was almost identical to the HinduMarriage Act of 1955, which gives some idea as tohow secularised the law regarding Hindus hadbecome. The Special Marriage Act allowed Muslimsto marry under it and thereby retain the protections,generally beneficial to Muslim women, that couldnot be found in the personal law. Under the act

polygamy was illegal, and inheritance andsuccession would be governed by the IndianSuccession Act, rather than the respective MuslimPersonal Law. Divorce also would be governed bythe secular law, and maintenance of a divorcedwife would be along the lines set down in the civillaw.

Nehru led the faction of the Congress partywhich promoted Hindi as the ligua-franca of theIndian nation. After an exhaustive and divisivedebate with the non-Hindi speakers, Hindi wasadopted as the official language of India in 1950with English continuing as an associate officiallanguage for a period of fifteen years, after whichHindi would become the sole official language.Efforts by the Indian Government to make Hindithe sole official language after 1965 were notacceptable to many non-Hindi Indian states, whowanted the continued use of English. The DravidaMunnetra Kazhagam (DMK), a descendant ofDravidar Kazhagam, led the opposition to Hindi.To allay their fears, Nehru enacted the OfficialLanguages Act in 1963 to ensure the continuinguse of English beyond 1965. The text of the Act didnot satisfy the DMK and increased their scepticismthat his assurances might not be honoured by futureadministrations. The issue was resolved during thepremiership of Lal Bahadur Shastri, who assuredthat English would continue to be used as theofficial language as long the non-Hindi speakingstates wanted. The Official Languages Act waseventually amended in 1967 by the CongressGovernment headed by Indira Gandhi to guaranteethe indefinite use of Hindi and English as officiallanguages. This effectively ensured the current"virtual indefinite policy of bilingualism" of theIndian Republic.

MILITARY CONFLICTS AND WARS

In 1961, after continual petitions for a peacefulhandover, India invaded and annexed the Por-tuguese colony of Goa on the west coast of India.

� Indo-China War (1962)

India adopted a policy of friendship towardsChina from the very beginning. The Congress hadbeen sympathetic to China's struggle againstimperialism and had sent a medical mission toChina in the thirties as well as given a call forboycott of Japanese goods in protest againstJapanese occupation of China. India was the first


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to recognize the new People's Republic of Chinaon 1 January, 1950. Nehru had great hopes thatthe two countries with their common experienceof suffering at the hands of colonial powers andcommon problems of poverty and under-development would join hands to give Asia its dueplace in the world. Nehru pressed for representationfor Communist China in the UN Security Council,did not support the US position in the Korean War,and tried his best to bring about a settlement inKorea.

In 1950, when China occupied Tibet, India wasunhappy that it had not been taken into confidence,but did not question China's rights over Tibet sinceat many times in Chinese history Tibet had beensubjugated by China. In 1954, India and Chinasigned a treaty in which India recognized China'srights over Tibet and the two countries agreed tobe governed in their mutual relations by theprinciples of Panchsheel. Differences over borderdelineation were discussed at this time but Chinamaintained that it had not yet studied the oldKuomintang maps and these could be sorted outlater.

In 1959, however, there was a big revolt inTibet and the Dalai Lama fled Tibet along withthousands of refugees. He was given asylum inIndia but not allowed to set up a government-in-exile and dissuaded from carrying on politicalactivities. Soon after, in October 1959, Chineseopened fire on an Indian patrol near the KongkaPass in Ladakh. China refused to accept theMcMahon Line and Beijing laid claims to 50,000square miles of territory in Sikkim and Bhutan.Chinese troops fire on an Indian patrol in the AksaiChin area killing nine soldiers and capturing ten.Letters were exchanged between the twogovernments, but a common ground did notemerge. Then, Chou En-lai was invited for talks toDelhi in April 1960, but not much headway couldbe made and it was decided to let officials sort outthe details first.

In June 1960, Chinese troops violate the Indianborder near Shipki village in the northeast andChina further occupies 12,000 sq. miles in thewestern sector. In October 1961, Chinese startaggressive border patrolling and establishes newmilitary formations which start moving into Indianterritory. India adopts the Forward Policy to stemthe advancing Chinese frontier line by establishinga few border outposts.

China issues ultimatum demanding thewithdrawal of the Indian frontier personnel fromthe border posts. In September 1962, Chinese forcescross the McMahon Line in the Thag La region inthe east and open fire on an Indian post. Launchanother intensified attack.

China launches a massive multi-pronged attackall along the border from Ladakh in the west toArunachal Pradesh in the east. A massive Chineseattack on the eastern front. Tawang and Walongin the eastern sector over run, Rezang La and theChushul airport in the west shelled. Chinese troopscapture Bomdi La in the NEFA region. In 1962,China declares a unilateral ceasefire along the entireborder and announces withdrawal of its troops to20 km behind the LAC.

After the war, China retained de facto controlof the Aksai Chin India stabilized along the Line ofActual Control. The war precipitated as well amassive diversion of funds from development tothe military, which, neglected, had remainedunchanged from the colonial era. The aftermath ofthe war saw sweeping changes in the Indianmilitary to prepare it for similar conflicts in thefuture, and placed pressure on Indian PrimeMinister Jawaharlal Nehru, who was seen asresponsible for failing to anticipate the Chineseattack on India. Indians reacted with a surge inpatriotism and memorials were erected for manyof the Indian troops who died in the war. Arguably,the main lesson India learned from the war wasthe need to strengthen its own defenses and a shiftfrom Nehru's foreign policy with China based onhis stated concept of "brotherhood". Because ofIndia's inability to anticipate Chinese aggre-ssion, Prime Minister Nehru faced harsh criticismfrom government officials, for having promotedpacifist relations with China. The war also put anend to Nehru's earlier hopes that India and Chinawould form a strong Asian Axis to counteract theincreasing influence of the Cold War bloc super-powers.

INDIA’S FOREIGN POLICY

India’s post-independence policymakers wereacutely sensitive to the significance of the coloniallegacy. Accordingly, they explicitly sought to forgea pathway that would keep India outside the ambitof the Cold War. Such a strategy was possiblebecause anti-imperialist sentiments were wide-spread within the Indian polity across the political


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spectrum. This strategy came to be known as non-alignment and Indian policymakers were at painsto distinguish it from “neutralism”.

The real architect of this policy was PrimeMinister Nehru. Even though he was tempera-mentally a Western liberal, he was deeply skepticalof the United States. In part, his skepticism wasthe consequence of his highly Anglicized personaland professional background. In effect, he had cometo share the British upper class disdain for theUnited States. His views toward the Soviet Unionwere more ambivalent. He was also cognizant ofthe horrors of Stalin’s collectivist enterprise thoughadmiring of the achievements of the forced-draughtindustrialization program. His partiality toward theUSSR also stemmed from his own social democraticpredilections.

At least two factors can be adduced to explainNehru’s adoption of non-alignment as the lodestarof India’s foreign policy. First, he was acutelyconcerned about the opportunity costs of defensespending. Any involvement with the two emergingblocs, he feared, would draw India into the titanicstruggle and divert critical resources from economicdevelopment. Second, he was intent on maintainingIndia’s hard-won independence. Moving into theambit of either superpower could compromise suchfreedom of maneuver.

THE PATHWAY TO 1962

From the time of independence to the disastrousborder conflict with China, three key featurescharacterized India’s foreign policy. First, Indiaplayed a significant role in multilateral institutionsand particularly in United Nations peacekeepingoperations. Second, it also emerged as a criticalproponent of the non-aligned movement. Third, asa leader of the non-aligned movement it also madea significant contribution toward the process ofdecolonization.

These three critical commitments, in turn,manifested themselves at global, regional andnational levels. At a global level, India attemptedto defuse Cold War tensions in a number ofcontexts regional and functional. To that end, Indiahad emerged as one of the early proponents of anuclear test ban treaty and in 1952 had introduceda draft resolution co-sponsored with Ireland tobring about a global ban on nuclear tests. In theevent, thanks to the exigencies of Cold War politics,little or nothing came of this effort. Nevertheless,

this endeavor was a manifestation of India’s interestin forging a particular global order, one whichwould hobble the use of force in internationalaffairs. India also sought to play a vital role inUnited Nations peacekeeping operations as well asthe peaceful resolution of regional disputes. Inpursuit of these ends India became involved in theInternational Control Commission in Vietnam alongwith Canada and Poland, it was a key member ofthe Neutral Nations Repatriation Commission inKorea and it also made a significant troopcontribution in the United Nations Peacekeepingforces in the Belgian Congo. Also, India proved tobe a tireless campaigner in the effort to bring aboutthe end of decolonization. To that end, India’sdiplomacy was carefully geared to the discussionof the issue at various international forum andespecially in the Non-Aligned Movement (NAM).

In the region, it referred the Kashmir disputewith Pakistan to the United Nations for possibleresolution. To the dismay of its policymakers, theissue became quickly embroiled in the politics ofthe Cold War. As a consequence of the largelypartisan discussions at the United Nations, India’spolitical leadership became increasinglydisillusioned about the resolution of its bilateralterritorial disputes through the mechanism of theUnited Nations. Not surprisingly, after extensivediplomatic discussion with the intransigent Salazarregime in Portugal produced a deadlock and PrimeMinister Nehru faced increasing criticism from agroup of Afro-Asian leaders, India chose to useforce to oust the Portuguese from their colonialenclave in Goa in 1960.

Finally, at national level, the country’scommitment to nonalignment led to the adoptionof particular set of significant policy choices.Specifically, one of the key elements of the doctrineof non-alignment was the limitation of high defenseexpenditures. To this end Indian militaryexpenditures were drastically limited even whensteady evidence about a possible security threat fromthe People’s Republic of China (PRC) continued tomount. Such a policy, unfortunately, proved to beextremely costly when the border negotiations withthe PRC ultimately reached a cul-de-sac in 1960.Faced with this situation, India embarked upon astrategy of compellence designed to restore what itdeemed to be the territorial status quo along thedisputed Himalayan border. This policy, however,was singularly ill-conceived as it involved sendingin lightly armed, poorly equipped and ill-preparedtroops to high altitudes in “penny packets”. In


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October 1962, when the People’s Liberation Army(PLA) attacked with considerable force, the Indianmilitary was grossly unprepared to face theonslaught. The PLA inflicted considerable losseson the Indian forces and then withdrew from someof the areas that they had entered. However, theydid not vacate some 14,000 square miles that theyhad initially claimed. These territories and otherstill remain the subject of tortured and glacialborder negotiations.

ASSESSMENT

While assertive in his Indianness, Nehru neverexuded the Hindu aura and atmosphere clingingto Gandhi’s personality. Because of his modern

political and economic outlook, he was able toattract the younger intelligentsia of India toGandhi’s movement of non-violent resistanceagainst the British and later to rally them aroundhim after independence had been gained. Nehru’sWestern upbringing and his visits to Europe beforeindependence had acclimatized him to Westernways of thinking. Throughout his 17 years in office,he held up democratic socialism as the guiding star.With the help of the overwhelming majority thatthe Congress Party maintained in Parliament duringhis term of office, he advanced toward that goal.The four pillars of his domestic policies weredemocracy, socialism, unity, and secularism. Hesucceeded to a large extent in maintaining the edificesupported by these four pillars during his lifetime.

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LAL BAHADURLAL BAHADURLAL BAHADURLAL BAHADURLAL BAHADUR

SHASTRI (1964-1966)SHASTRI (1964-1966)SHASTRI (1964-1966)SHASTRI (1964-1966)SHASTRI (1964-1966)CHRONICLEIAS ACADEMYA CIVIL SERVICES CHRONICLE INITIATIVE

After the death of Prime Minister JawaharlalNehru in 1964 Gulzarilal Nanda became interimPrime Minister for thirteen days. His term wasuneventful, yet it was sensitive of period becauseof the potential danger to the country followingNehru's death soon after a war with China in 1962.

Lal Bahadur Shastri (born 1904) succeededJawaharlal Nehru as Prime Minister of India in1964. Though eclipsed by such stalwarts of theCongress party as Kamaraj (the Kingmaker) andMorarji Desai, Finance Minister in Nehru'sgovernment, Shastri emerged as the consensuscandidate in the midst of party warfare. Acceptingthe limited character of his political mandate, Shastridid not make any major changes in Nehru'sCabinet, except for persuading Indira Gandhi,Nehru’s daughter, to join it as Minister ofInformation and Broadcasting. Under him, thecabinet ministers functioned more autonomously.He also did not interfere in party affairs or withthe working of the state governments. On thewhole, he kept a low political profile except towardsthe end of his administration.

The problem of the official language of Hindiversus English, flared up in early 1965, but thecentral government failed to handle it effectivelyand allowed the situation to deteriorate. Theproblem was, however, finally resolved in early1966. The demands for Punjabi Suba (state) andGoa's merger with Maharashtra were also allowedto simmer.

During his tenure the country was facing hugechallenges. There was food shortage in the countryand on the security front Pakistan was creatingproblems. In 1965, Pakistan tried to take advantageof India's vulnerability and attacked India. Mild-mannered Lal Bahadur Shastri rose to the occasionand led the country ably. To enthuse soldiers andfarmers he coined the slogan of "Jai Jawan, JaiKishan". In January 1966, to broke peace betweenIndia and Pakistan, Russia mediated a meetingbetween Lal Bahadur Shastri and Ayub Khan inTashkent, Russia. India and Pakistan signed the

joint declaration under Russian mediation. Underthe treaty India agreed to return to Pakistan all theterritories occupied by it during the war. The jointdeclaration was signed on January 10, 1966 andLal Bahadur Shastri died of heart attack on thesame night.

ECONOMIC POLICIES

Shastri continued Nehru's socialist economicpolicies with central planning. He promoted theWhite Revolution – a national campaign to increasethe production and supply of milk – by supportingthe Amul milk co-operative of Anand, Gujarat andcreating the National Dairy Development Board.

Shri Lal Bahadur Shastri, Prime Minister ofIndia, visited Anand on 31 October, 1964 forinauguration of the Cattle Feed Factory of Amul atKanjari. As he was keenly interested in knowingthe success of this co-operative and discusses hiswish to Mr. Verghese Kurien, then the GeneralManager of Kaira District Co-operative MilkProducers’ Union Ltd. (Amul) to replicate thismodel to other parts of the country for improvingthe socio-economic conditions of farmers. As a resultof this visit, the National Dairy Development Board(NDDB) was established at Anand in 1965.

While speaking on the chronic food shortagesacross the country, Shastri urged people tovoluntarily give up one meal so that the saved foodcould be distributed to the affected populace. Hehimself motivated the countrymen to maximize thecultivation of food grains by ploughing the lawn inhis official residence in New Delhi.

Shastri hated the idea of going around with abegging bowl. So he hit upon a novel idea. Hewent on air to appeal to his countrymen to skip ameal a week. The response was overwhelming.Even restaurants and eateries downed the shutterson Monday evenings. Many parts of the countryobserved the “Shastri Vrat”. First he implementedthe system in his own family before appealing tothe countrymen.


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During the 22-day war with Pakistan in 1965,On October 19, 1965, Shastri gave the seminal ‘JaiJawan Jai Kishan’ ("Hail the soldier, Hail thefarmer") slogan at Urwa in Allahabad that becamea national slogan.

Underlining the need to boost India's foodproduction, Shastri also promoted the GreenRevolution. Though he was a socialist, Shastri statedthat India cannot have a regimented type ofeconomy.

The Food Corporation of India was setup underthe Food Corporation's Act 1964. Also the NationalAgricultural Products Board Act was passed duringhis tenure.

THIRD FIVE-YEAR PLAN

The Third Five-year Plan stressed agricultureand improvement in the production of wheat, butthe brief Sino-Indian War of 1962 exposedweaknesses in the economy and shifted the focustowards the defence industry and the Indian Army.In 1965–1966, India fought a War with Pakistan.There was also a severe drought in 1965. The warled to inflation and the priority was shifted to pricestabilisation. The construction of dams continued.

Many cement and fertilizer plants were alsobuilt. Punjab began producing an abundanceof wheat.

Many primary schools were started in ruralareas. In an effort to bring democracy to the grass-root level, Panchayat elections were started andthe states were given more development responsi-bilities.

State electricity boards and state secondaryeducation boards were formed. States were maderesponsible for secondary and higher education.State road transportation corporations were formedand local road building became a state responsibility.The target growth rate was 5.6%, but the actualgrowth rate was 2.4%.

Due to miserable failure of the Third Plan thegovernment was forced to declare "plan holidays"(from 1966–67, 1967–68, and 1968–69). Threeannual plans were drawn during this interveningperiod. During 1966–67, there was again theproblem of drought. Equal priority was given toagriculture, its allied activities, and industrial sector.The main reasons for plan holidays were the war,lack of resources, and increase in inflation.

MAJOR EVENTS

� Second Indo-Pakistan War (1965)

The 1965 war between India and Pakistan wasthe second conflict between the two countries overthe status of the state of Jammu and Kashmir. Theclash did not resolve this dispute, but it did engagethe United States and the Soviet Union in waysthat would have important implications forsubsequent superpower involvement in the region.

The state of Jammu and Kashmir, which had apredominantly Muslim population but a Hinduleader, shared borders with both India and WestPakistan. The argument over which nation wouldincorporate the state led to the first India-PakistanWar in 1947–48 and ended with UN mediation.Jammu and Kashmir, also known as “IndianKashmir” or just “Kashmir,” joined the Republicof India, but the Pakistani Government continuedto believe that the majority Muslim state rightfullybelonged to Pakistan.

Conflict resumed again in early 1965, whenPakistani and Indian forces clashed over disputedterritory along the border between the two nations.Hostilities intensified that August when thePakistani army attempted to take Kashmir by force.The attempt to seize the state was unsuccessful,and the second India-Pakistan War reached astalemate. This time, the international politics ofthe Cold War affected the nature of the conflict.

The United States had a history of ambivalentrelations with India. During the 1950s, U.S. officialsregarded Indian leadership with some caution dueto India’s involvement in the non-alignedmovement, particularly its prominent role at theBandung Conference of 1955. The United Stateshoped to maintain a regional balance of power,which meant not allowing India to influence thepolitical development of other states. However, a1962 border conflict between India and Chinaended with a decisive Chinese victory, whichmotivated the United States and the UnitedKingdom to provide military supplies to the Indianarmy. After the clash with China, India also turnedto the Soviet Union for assistance, which placedsome strains on U.S.-Indian relations. However, theUnited States also provided India with considerabledevelopment assistance throughout the 1960s and1970s.

U.S.-Pakistani relations had been more


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consistently positive. The U.S. Government lookedto Pakistan as an example of a moderate Muslimstate and appreciated Pakistani assistance inholding the line against communist expansion byjoining the Southeast Asia Treaty Organization(SEATO) in 1954 and the Baghdad Pact (laterrenamed the Central Treaty Organization, or(CENTO) in 1955. Pakistan’s interest in these pactsstemmed from its desire to develop its military anddefensive capabilities, which were substantiallyweaker than those of India. Both the United Statesand the United Kingdom supplied arms to Pakistanin these years.

After Pakistani troops invaded Kashmir, Indiamoved quickly to internationalize the regionaldispute. It asked the United Nations to reprise itsrole in the First India-Pakistan War and end thecurrent conflict. The Security Council passedResolution 211 on September 20 calling for an endto the fighting and negotiations on the settlementof the Kashmir problem, and the United States andthe United Kingdom supported the UN decisionby cutting off arms supplies to both belligerents.This ban affected both belligerents, but Pakistanfelt the effects more keenly since it had a muchweaker military in comparison to India. The UNresolution and the halting of arms sales had animmediate impact. India accepted the ceasefire onSeptember 21 and Pakistan on September 22.

The ceasefire alone did not resolve the status ofKashmir, and both sides accepted the Soviet Unionas a third-party mediator. Negotiations in Tashkentconcluded in January 1966, with both sides givingup territorial claims, withdrawing their armies fromthe disputed territory. Nevertheless, although theTashkent agreement achieved its short-term aims,conflict in South Asia would reignite a few yearslater.

FOREIGN POLICY

Shastri continued Nehru's policy of non-alignmentbut also built closer relations with the Soviet Union.In the aftermath of the Sino-Indian War of 1962 andthe formation of military ties between the ChinesePeople's Republic and Pakistan, Shastri's governmentdecided to expand the defence budget of India'sarmed forces.

In 1964, Shastri signed an accord with the SriLankan Prime Minister Sirimavo Bandaranaikeregarding the status of Indian Tamils in the thenCeylon. This agreement is also known as the Srimavo-Shastri Pact or the Bandaranaike-Shastri pact.

Under the terms of this agreement, 600,000 IndianTamils were to be repatriated, while 375,000 were tobe granted Sri Lankan citizenship. This settlementwas to be done by 31 October, 1981. However, afterShastri's death, by 1981, India had taken only 300,000Tamils as repatriates, while Sri Lanka had grantedcitizenship to only 185,000 citizens (plus another62,000 born after 1964). Later, India declined toconsider any further applications for citizenship,stating that the 1964 agreement had lapsed.

In December 1965, Lal Bahadur Shastri made anofficial visit with his Family to Rangoon, Burma andre-established a cordial relation with the country’sMilitary government of General Ne Win. India’srelationship with Burma stained after the 1962Military coup followed by Lakhs of Indian Familymost of them are Tamils and Bengalis repatriate toIndia from 1964.

The Central Government in New Delhi monitoredthe overall process of repatriation and arranged foridentification and then transportation of the Indianreturnees from Burma back into India, it fell underthe responsibilities of local governments to provideadequate facilities to shelter the repatriates upon

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INDIRA GANDHI TENUREINDIRA GANDHI TENUREINDIRA GANDHI TENUREINDIRA GANDHI TENUREINDIRA GANDHI TENURE

AND EMERGENCYAND EMERGENCYAND EMERGENCYAND EMERGENCYAND EMERGENCY

(1969–1984)(1969–1984)(1969–1984)(1969–1984)(1969–1984)


After the death of Prime Minister Lal BahadurShastri in 1966 Gulzarilal Nanda once againbecame interim Prime Minister for thirteen days.

On Shastri’s sudden death in January 1966,Gandhi became leader of the Congress Party—andthus also prime minister—in a compromise betweenthe right and left wings of the party. Her leadership,however, came under continual challenge from theright wing of the party, led by a former minister offinance, Morarji Desai. Indira Gandhi (November19, 1917, Allahabad, India—died October 31,1984, New Delhi) served as prime ministerof India for three consecutive terms (1966–77) anda fourth term from 1980 until she was assassinatedin 1984.

In 1967, the Congress Party won a reducedmajority in the 1967 elections owing to widespreaddisenchantment over rising prices of commodities,unemployment, economic stagnation and a foodcrisis. Indira Gandhi had started on a rocky noteafter agreeing to a devaluation of the Indian rupee,which created much hardship for Indian businessesand consumers, and the import of wheat from theUnited States fell through due to political disputes.

Morarji Desai entered Gandhi's government asDeputy Prime Minister and Finance Minister, andwith senior Congress politicians attempted toconstrain Gandhi's authority. But following thecounsel of her political advisor, P.N. Haksar, Gandhiresuscitated her popular appeal by a major shifttowards socialist policies. She successfully endedthe privy purse guarantee for former Indian royalty,and waged a major offensive against partyhierarchy over the nationalisation of India's banks.Although resisted by Desai and India's businesscommunity, the policy was popular with themasses. When Congress politicians attempted tooust Gandhi by suspending her Congressmembership, Gandhi was empowered with a largeexodus of Members of Parliament to her ownCongress (R). The bastion of the Indian freedomstruggle, the Indian National Congress had split in1969. Gandhi continued to govern with a slimmajority.

In 1971, Indira Gandhi and her Congress (R)were returned to power with a massively increasedmajority. The nationalisation of banks was carriedout, and many other socialist economic andindustrial policies enacted. India intervened inBangladesh Liberation War-a civil war taking placein Pakistan's Bengali half, after millions of refugeeshad fled the persecution of the Pakistani army. Theclash resulted in the independence of East Pakistan,which became known as Bangladesh, and PrimeMinister Indira Gandhi's elevation to immensepopularity. Relations with the United States grewstrained, and India signed a 20-year treaty offriendship with the Soviet Union - breakingexplicitly for the first time from non-alignment. In1974, India tested its first nuclear weapon in thedesert of Rajasthan. Meanwhile, in the Indianprotectorate of Sikkim, a referendum was held thatresulted in a vote to formally join India and deposethe Chogyal. On 26 April, 1975, Sikkim formallybecame India's 22nd state.

In 1974, the Allahabad High Court found IndiraGandhi guilty of misusing government machineryfor election purposes. Opposition parties conductednationwide strikes and protests demanding herimmediate resignation. Various political partiesunited under Jaya Prakash Narayan to resist whathe termed Mrs. Gandhi's dictatorship. Leadingstrikes across India that paralysed its economy andadministration, Narayan even called for the Armyto oust Mrs. Gandhi. In 1975, Mrs. Gandhi advisedPresident Fakhruddin Ali Ahmed to declare a stateof emergency under the Constitution, whichallowed the Central government to assumesweeping powers to defend law and order in thenation. Explaining the breakdown of law and orderand threat to national security as her primaryreasons, Mrs. Gandhi suspended many civilliberties and postponed elections at national andstate levels. Non-Congress governments in Indianstates were dismissed, and nearly 1,000 oppositionpolitical leaders and activists were imprisoned andprogramme of compulsory birth control intro-duced. Strikes and public protests were outlawedin all forms.


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India's economy benefited from an end toparalysing strikes and political disorder. Indiaannounced a 20-point programme which enhancedagricultural and industrial production, increasingnational growth, productivity and job growth. Butmany organs of government and many Congresspoliticians were accused of corruption andauthoritarian conduct. Police officers were accusedof arresting and torturing innocent people. Indira'sson and political advisor, Sanjay Gandhi wasaccused of committing gross excesses - Sanjay wasblamed for the Health Ministry carrying out forcedvasectomies of men and sterilisation of women asa part of the initiative to control population growth,and for the demolition of slums in Delhi.

JANATA PARTY

Gandhi's Congress Party called for generalelections in 1977, only to suffer a humiliatingelectoral defeat at the hands of the Janata Party,an amalgamation of opposition parties. MorarjiDesai became the first non-Congress Prime Ministerof India. The Desai administration establishedtribunals to investigate Emergency-era abuses, andIndira and Sanjay Gandhi were arrested after areport from the Shah Commission.

But in 1979, the coalition crumbled and CharanSingh formed an interim government. The Janataparty had become intensely unpopular due to itsinternecine warfare, and the fact that it offered noleadership on solving India's serious economic andsocial problems.

Indira Gandhi and her Congress party splintergroup, Congress (Indira) party were swept backinto power with a large majority in January 1980.

But the rise of an insurgency in Punjab wouldjeopardize India's security. In Assam, there weremany incidents of communal violence betweennative villagers and refugees from Bangladesh, aswell as settlers from other parts of India. WhenIndian forces undertaking Operation Blue Star,raided the hideout of self-rule pressing Khalistanmilitants in the Golden Temple - Sikhs' most holyshrine - in Amritsar, the inadvertent deaths ofcivilians and damage to the temple buildinginflamed tensions in the Sikh community acrossIndia. The Government used intensive policeoperations to crush militant operations, but itresulted in many claims of abuse of civil liberties.Northeast India was paralyzed owing to the ULFA'sclash with Government forces.

On 31 October, 1984, the Prime Minister's ownSikh bodyguards assassinated her, and 1984 Anti-Sikh Riots erupted in Delhi and parts of Punjab.

ECONOMIC POLICY

Gandhi presided over three Five-Year plans asPrime Minister. All but one of them succeeding inmeeting the targeted growth. There is considerabledebate regarding whether Gandhi was a socialiston principle or out of political expediency. Regard-less of the debate over her ideology or lack ofthereof, Gandhi remains a left-wing icon. She hasbeen described as the "arguably the greatest massleader of the last century. Her campaign slogan,‘Garibi Hatao’ (Remove Poverty), has become theiconic motto of the Indian National Congress.

Due to miserable failure of the Third Plan thegovernment was forced to declare "plan holidays"(from 1966–67, 1967–68, and 1968–69). Threeannual plans were drawn during this interveningperiod. During 1966–67 there was again theproblem of drought. Equal priority was given toagriculture, its allied activities, and industrial sector.The main reasons for plan holidays were the war,lack of resources, and increase in inflation.

� Green Revolution and the Fourth Five YearPlan (1969-1974)

At this time Indira Gandhi was the PrimeMinister. Fiscal problems associated with the warwith Pakistan in 1965, along with a drought-induced food crisis that spawned famines, hadplunged India into the sharpest recession sinceindependence. To deal with India's food problems,Gandhi expanded the emphasis on production ofinputs to agriculture that had already been initiatedby her father, Jawaharlal Nehru. The GreenRevolution in India subsequently culminated underher government in the 1970s and transformed thecountry from a nation heavily reliant on importedgrains and prone to famine to being largely able tofeed itself, and become successful in achieving itsgoal of food security. The Indira Gandhigovernment nationalised 14 major Indian banksand the Green Revolution in India advancedagriculture. In addition, the situation in EastPakistan (now Bangladesh) was becoming dire asthe Indo-Pakistan War of 1971 and BangladeshLiberation War took funds earmarked for industrialdevelopment. India also performed the SmilingBuddha underground nuclear test in 1974. The


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target growth rate was 5.6%, but the actual growthrate was 3.3%.

� Fifth Five Year Plan (1974-1979)

The Fifth Five-Year Plan laid stresson employment, poverty alleviation (Garibi Hatao),and justice. The plan also focused on self-reliance inagricultural production and defence. The measuresof the emergency regime was able to halt theeconomic trouble of the early to mid-1970s, whichhad been marred by harvest failures, fiscalcontraction, and the breakdown of the BrettonWoods system of fixed exchanged rate; the resultingturbulence in the foreign exchange markets beingfurther accentuated by the oil shock of 1973. Thegovernment was even able to exceed the targetedgrowth figure with an annual growth rate of5.0–5.2% over the five-year period of the plan(1974–79). The economy grew at the rate of 9% in1975–76 alone, and the Fifth Plan, became the firstplan during which the per capita income of theeconomy grew by over 5%. In 1978 the newlyelected Morarji Desai government rejected the plan.The Electricity Supply Act was amended in 1975,which enabled the central government to enter intopower generation and transmission.

The Indian national highway system wasintroduced and many roads were widened toaccommodate the increasing traffic. Tourism alsoexpanded. It was followed from 1974 to 1979. Thetarget growth rate was 4.4% and the actual growthrate was 5.0%.

� Rolling Plan (1978-80)

The Janata Party government rejected the FifthFive–Year Plan and introduced a new Sixth Five-Year Plan (1978–1983). This plan was againrejected by the Indian National Congress govern-ment in 1980 and a new Sixth Plan was made. Theearlier one was subsequently referred to as a rollingplan.

� Sixth Five-Year Plan (1980-85)

Although Gandhi continued professing socialistbeliefs, the Sixth Five–Year Plan marked thebeginning of economic liberalization. Populistprograms and policies were replaced by prag-matism. Price controls were eliminated and rationshops were closed. This led to an increase in foodprices and an increase in the cost of living. Familyplanning was also expanded in order to prevent

overpopulation. In contrast to China's strict andbinding one-child policy, Indian policy did not relyon the threat of force. More prosperous areas ofIndia adopted family planning more rapidly thanless prosperous areas, which continued to have ahigh birth rate. There was an emphasis ontightening public expenditures, greater efficiencyof the State Owned Enterprises (SOE), and instimulating the private sector through deregulationand liberation of the capital market. Thegovernment subsequently launched OperationForward in 1982, the first cautious attempt atreform. The Sixth Five-Year Plan was a greatsuccess to the Indian economy. The target growthrate was 5.2% and the actual growth rate was5.4%.

DOMESTIC POLICY

� Nationalisation

Despite the provisions, control and regulationsof Reserve Bank of India, most banks in India hadcontinued to be owned and operated by privatepersons. In 1969, Gandhi moved to nationalisefourteen major commercial banks. After thenationalisation of banks, the branches of the publicsector banks in India rose to approximate 800 percent in deposits, and advances took a huge jumpby 11,000 per cent. Nationalisation also resulted ina significant growth in the geographical coverageof banks; the number of bank branches rose from8,200 to over 62,000, most of which were openedin the unbanked, rural areas. The nationalisationdrive not only helped to increase household savings,but it also provided considerable investments inthe informal sector, in small and medium-sizedenterprises, and in agriculture, and contributedsignificantly to regional development and to theexpansion of India’s industrial and agriculturalbase. Having been re-elected in 1971 on anationalisation platform, Gandhi proceeded tonationalise the coal, steel, copper, refining, cottontextiles, and insurance industries. Most of thesenationalisations were made to protect employmentand the interest of the organized labour. Theremaining private sector industries were placedunder strict regulatory control. In 1973, IndiraGandhi nationalised oil companies.

� Administration

In 1966, Punjab was reorganized on linguisticlines. The Hindi-speaking southern half of Punjab


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became a separate state, Haryana, while the Paharispeaking hilly areas in the northeast were joinedto Himachal Pradesh. In doing so, the intension wasto ward off the growing political conflict betweenHindu and Sikh groups in the region. However, acontentious issue that was considered unresolvedby the Akali's was the status of Chandigarh, aprosperous city on the Punjab-Haryana border,which was a union territory to be shared as acapital by both the states.

Victory over Pakistan in 1971 consolidatedIndian power in Kashmir. Gandhi indicated thatshe would make no major concessions on Kashmir.The most prominent of the Kashmiri separatists, Sheikh Abdullah, had to recognize India's controlover Kashmir in light of the new order in SouthAsia. The situation was normalized in the yearsfollowing the war after Abdullah agreed to anaccord with Gandhi, by giving up the demand fora plebiscite in return for a special autonomousstatus for Kashmir. In 1975, the state of Jammuand Kashmir was decleared as a constituent unitof India. The Kashmir conflict remained largelypeaceful under Gandhi's premiership.

In 1972, Meghalaya, Manipur and Tripura weregranted statehood, while the North-East FrontierAgency was declared a union territory andrenamed Arunachal Pradesh. The transition tostatehood for these territories was successfullyoverseen by her administration. This was followedby the annexation of Sikkim in 1975.

The principle of equal pay for equal work forboth men and women was enshrined in theIndian Constitution under the Gandhi admini-stration. Gandhi questioned the continuedexistence of a privy purse for Indian monarchs.She argued the case for abolition based on equalrights for all citizens and the need to reduce thegovernment's revenue deficit. The privy pursewas abolished by the 26th Amendment to theConstitution of India.

� Language policy

Under the Indian Constitution of 1950, Hindiwas to have become the official national languageby 1965. This was not acceptable to many non-Hindi speaking states, who wanted the continueduse of English in government. In 1967, Gandhimade a constitutional amendment that guaranteedthe de facto use of both Hindi and English as officiallanguages. This established the official government

policy of bilingualism in India and satisfied the non-Hindi speaking Indian states. Gandhi thus putherself forward as a leader with a pan-Indianvision.

� National security

In the late 1960s and 1970s, Gandhi had theIndian army crush militant Communist uprisings inthe Indian state of West Bengal. The communistinsurgency in India was completely suppressedduring the state of emergency.

Gandhi considered the north-eastern regions important, because of its strategic situation. In 1966,the Mizo uprising took place against the govern-ment of India and overran almost the whole ofthe Mizoram region. Gandhi ordered the Indianarmy to launch massive retaliatory strikes inresponse. The rebellion was suppressed withthe Indian Air Force even carrying out airstrikesin Aizawl; this remains the only instance of Indiacarrying out an airstrike in its own civilianterritory. The defeat of Pakistan in 1971 and thesecession of East Pakistan as pro-India Bangladeshled to the collapse of the Mizo separatist movement.In 1972, after the less extremist Mizo leaders cameto the negotiating table, Gandhi upgraded Mizoramto the status of a union territory. A small-scaleinsurgency by some militants continued into thelate 1970s but was successfully dealt with by thegovernment. The Mizo conflict was definitivelyresolved during the administration of Indira'sson Rajiv Gandhi. Today, Mizoram is considered asone of the most peaceful states in the north-east.Responding to the insurgency in Nagaland, Gandhi"unleashed a powerful military offensive" in the1970s. Finally, a massive crackdown on theinsurgents took place during the state ofemergency ordered by Gandhi. The insurgents soonagreed to surrender and signed the ShillongAccord in 1975. While the agreement wasconsidered a victory for the Indian government andended large-scale conflicts, there has since beenspurts of violence by rebel holdouts and ethnicconflict amongst the tribes.

� Nuclear Programme of India

Gandhi contributed and further carried out thevision of Jawarharalal Nehru, former Premier ofIndia to develop the program. Gandhi authorisedthe development of nuclear weapons in 1967, inresponse to the Test No.6 by People's Republic ofChina. Gandhi saw this test as Chinese nuclear


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intimidation, therefore, Gandhi promoted the viewsof Nehru to establish India's stability and securityinterests as independent from those of the nuclearsuperpowers.

The program became fully mature in 1974, whenDr. Raja Ramanna reported to Gandhi that Indiahad the ability to test its first nuclear weapon In1974, India successfully conducted an undergroundnuclear test, unofficially code named as "SmilingBuddha", near the desert village of Pokhran inRajasthan.

FOREIGN POLICY DURING SHASTRIAND INDIRA GANDHI TENURE

� “Modified Structuralism”: the post-Nehru Era

The military defeat in 1962 marked nothingshort of a watershed in the structure and conductof India’s foreign and security policies. In theimmediate aftermath of this military debacle, Nehruovercame his staunch objections to defensespending. In his final days, he oversaw a drasticre-appraisal of India’s security policies andpractices. Most importantly, India embarked on asubstantial program of military modernization. Itcommitted itself to the creation of a million manarmy with ten new mountain divisions equippedand trained for high altitude warfare, a 45 squadronairforce with supersonic aircraft and a modestprogram of naval expansion. However, even afterNehru’s demise in 1964, his successors still couldnot formally abandon the stated adherence to apolicy of non-alignment. Consequently, the rhetoricof non-alignment remained a staple of Indianforeign policy. India’s foreign policy behavior,however, increasingly assumed a more Realistorientation.

Once again, global, regional and personal factorscontributed to the major policy shift. Despite afleeting moment of military cooperation with Indiain the aftermath of the 1962 war, the United Statesdisengaged itself from South Asia after the secondIndo-Pakistani conflict in 1965 as it becameincreasingly preoccupied with the prosecution of theVietnam war. Barring a brief and unhappy interludein 1966 when the Johnson administration chose toexert considerable economic pressure on India totemper its criticism of the Vietnam war, to reformits agricultural policies and to open up its domesticeconomy to foreign investment, the United States,for all practical purposes, lost interest in India.

Sensing an opportunity to expand theirinfluence in the subcontinent, the Soviets brokereda peace agreement between India and Pakistan inthe Central Asian city of Tashkent in 1966. Withthis American disengagement from the sub-continent, Pakistan sought to expand the scope ofits security cooperation with China to balanceIndian power contributing to a growing securitynexus between India’s two major adversaries.

At a regional level, India’s misgivings about itssecurity increased in the aftermath of the firstChinese nuclear test at Lop Nor in 1964. Thepolitical fallout from these tests was considerable.Some within India’s parliament called for anabandonment of non-alignment and even urgedthat India acquire an independent nuclear weaponsoption. After considerable debate, the rulingCongress party and the new Prime Minister, LalBahadur Shastri, reaffirmed the country’s publiccommitment to non-alignment and eschewed anyimmediate plans to acquire nuclear weapons.

However, in 1966, Prime Minister IndiraGandhi, Shastri’s successor, decided to seek anuclear guarantee from the great powers. Thiseffort, proved to be quite fruitless. In the aftermathof this failure, Prime Minister Gandhi authorizedIndia’s Subterranean Nuclear Explosions Project(SNEP) which culminated in India’s first nucleartest of May 1974. Under Indira Gandhi, India’sforeign policy sought to sustain two competingvisions of world order. On the one hand, India stillsupported the cause of decolonization andcontinued to lead the charge on behalf of theweaker states in the international system. Forexample, it remained a staunch opponent of theapartheid regime in South Africa, it was anunyielding supporter of the Palestinian cause andit opposed the Portuguese presence in Angola andMozambique.

On the other hand, it also came to accept theimportance of defense preparedness andincreasingly overcame its reservations about the useof force in international politics. Not surprisingly,when faced with several million refugees from EastPakistan as a consequence of the outbreak of acivil war, the country quickly forged a carefulpolitico-diplomatic strategy to breakup Pakistan.Part of this strategy involved the acquisition of atacit security guarantee from the Soviet Union tocounter possible Chinese malfeasance. Accordingly,despite India’s professed commitment tonon-alignment it signed a twenty-year pact of


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“peace, friendship and cooperation” with the SovietUnion in August 1971. With its northern flanksthereby protected, India had a free hand tointervene in East Pakistan. Fortunately, Pakistan’sattack on its northern air bases in early Decembergave it the casus belli to launch an attack on theeastern front. Within two weeks, the Indian armyalong with an indigenous Bengali rebel movement,the “mukti bahini” (literally “liberation force”)militarily prevailed against the demoralizedPakistani forces.

In the aftermath of the 1971 war, theconcomitant break-up of Pakistan and the creationof Bangladesh, Indian emerged as the undisputeddominant power within the subcontinent. Despiteits new found status, the country was unable totranscend the region. Several factors account forthis failure to emerge as a power of anyconsequence in the global order. Most importantly,thanks to its pursuit of a dubious strategy of state-led industrialization India’s economic growthremained anemic. Simultaneously, the country’sdeep-seated export pessimism led it to shy awayfrom integrating itself into the global economy. Thefailure to develop ties with the global economycontributed to a paucity of foreign investment,important technological lags, a lack of innovationand the stifling of entrepreneurship. In turn, theseforces contributed to what the eminent Indianeconomist Raj Krishna mordantly referred to asthe “Hindu rate of growth”.

India’s political choices at systemic and nationallevels also did very little to enhance it global stature.At a global level, in the wake of the first oil crisisof 1973, India chose to spearhead the Group of 77,a set of developing nations seeking to fundamentallyalter the global economic order. Ironically, while itwas a leader of this coalition it benefited little fromthe global spike in oil prices and failed to obtainany meaningful concessions as a resource-poordeveloping nation from the Organization ofPetroleum Exporting Countries (OPEC).

Indeed the country’s economic weaknesseffectively prevented it from carrying through aviable nuclear weapons program even after itmanaged to successfully test a nuclear weapon inMay 1974. Faced with widespread global diplomaticdisapprobation and significant economic andtechnological sanctions, India’s policymakers chosenot carry out any further tests.

Throughout much of the decade of the 1970sthanks to its poor record of economic growth and

its diplomatic limitations India became a marginalplayer in the global order. Its influence remainedconfined to the South Asian region. Its insignifi-cance was again underscored when the Sovietsinvaded Afghanistan in December 1979. TheUnited States paid scant attention to Indiansensibilities and concerns when it chose to forge arenewed strategic relationship with Pakistan almostimmediately after the Soviet invasion. GeneralZia-ul-Haq even rebuffed India’s efforts atreassuring Pakistan in the aftermath of the invasion.

In its efforts to oust the Soviets fromAfghanistan the United States came to rely heavilyon Pakistan. General Zia-ul-Haq, the militarydictator, quite astutely exacted a significanteconomic and military price for such cooperation.During his watch, the United States provided twopackages of foreign assistance the first for five yearsof $3.2 billion and the second for six years of $4.02billion. In an effort to maintain its militarysuperiority over Pakistan, India entered into atighter military cooperation relationship with theSoviet Union. This military relationship, however,exacted a significant diplomatic cost. India wasforced to tacitly acquiesce in the Soviet occupationof Afghanistan. For the remainder of the decade,barring some limited efforts on the part of theReagan administration to improve relations withIndia as part of a strategy to reduce the country’sdependence on the Soviet Union, India remainedof little consequence to the great powers.

MAJOR EVENTS

� Indo–Pakistan War (1971) and Bangladesh

The Indo–Pakistani conflict was sparked by theBangladesh Liberation war, a conflict between thetraditionally dominant West Pakistanis and themajority East Pakistanis.[14] The BangladeshLiberation war ignited after the 1970 Pakistanielection, in which the East Pakistani AwamiLeague won 167 of 169 seats in East Pakistan andsecured a simple majority in the 313-seat lowerhouse of the Majlis-e-Shoora (Parliament of Pakistan).Awami League leader Sheikh Mujibur Rahman presented the Six Points to the President of Pakistanand claimed the right to form the government. Afterthe leader of the Pakistan Peoples Party, Zulfikar AliBhutto, refused to yield the premiership of Pakistanto Mujibur, President Yahya Khan called themilitary, dominated by West Pakistanis, to suppressdissent in East Pakistan.


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Mass arrests of dissidents began, and attemptswere made to disarm East Pakistani soldiers andpolice. After several days of strikes and non-co-operation movements, the Pakistani military crackeddown on Dhaka on the night of 25 March, 1971.The Awami League was banished, and manymembers fled into exile in India. Mujib was arrestedon the night of 25–26 March, 1971 at about 1:30 am(as per Radio Pakistan's news on 29 March, 1971)and taken to West Pakistan. The next action carriedout was Operation Searchlight, an attempt to killthe intellectual elite of the east.[31]

On 26 March, 1971, Ziaur Rahman, a major inthe Pakistani army, declared the independence ofBangladesh. In April, exiled Awami League leadersformed a government-in exile in Baidyanathtala of Meherpur. The East Pakistan Rifles, a parami-litary force, defected to the rebellion. BangladeshForce namely Mukti Bahini consisting of NiyomitoBahini (Regular Force) and Gono Bahini (GuerillaForce).

India’s Involvement

The Pakistan army conducted a widespreadgenocide against the Bengali population of EastPakistan, aimed in particular at the minority Hindupopulation, leading to approximately 10 million people fleeing East Pakistan and taking refuge inthe neighbouring Indian states. The East Pakistan-India border was opened to allow refugees safeshelter in India. The governments of West Bengal,Bihar, Assam, Meghalaya and Tripura established refugee camps along the border. The resulting floodof impoverished East Pakistani refugees placed anintolerable strain on India's already overburdenedeconomy.

The Indian government repeatedly appealed tothe international community, but failing to elicit anyresponse, Prime Minister Indira Gandhi on 27March, 1971 expressed full support of hergovernment for the independence struggle of thepeople of East Pakistan. The Indian leadershipunder Prime Minister Gandhi quickly decided thatit was more effective to end the genocide by takingarmed action against Pakistan than to simply giverefuge to those who made it across to refugeecamps. Exiled East Pakistan army officers andmembers of the Indian Intelligence immediatelystarted using these camps for recruitment andtraining of Mukti Bahini guerrillas.

The mood in West Pakistan had also turnedincreasingly jingoistic and militaristic against East

Pakistan and India. By the end of September, anorganised propaganda campaign, possiblyorchestrated by elements within the Governmentof Pakistan, resulted in stickers proclaiming CrushIndia becoming a standard feature on the rearwindows of vehicles in Rawalpindi, Islamabad andLahore and soon spread to the rest of WestPakistan. By October, other stickers proclaimed Hang the Traitor in an apparent reference to SheikhMujibur Rahman.

By November, war seemed inevitable. Through-out November, thousands of people led by WestPakistani politicians marched in Lahore and acrossWest Pakistan, calling for Pakistan to CrushIndia. India responded by starting a massivebuildup of Indian forces on the border with EastPakistan. The Indian military waited untilDecember, when the drier ground would make foreasier operations and Himalayan passes would beclosed by snow, preventing any Chinese inter-vention. On 23 November, Yahya Khan declared astate of emergency in all of Pakistan and told hispeople to prepare for war.

On the evening of 3 December, Sunday, atabout 5:40 pm, the Pakistani Air Force (PAF)launched a pre-emptive strike on eleven airfields innorth-western India.

In an address to the nation on radio that sameevening, Prime Minister Indira Gandhi held thatthe air strikes were a declaration of war againstIndia and the Indian Air Force responded withinitial air strikes that very night. These air strikeswere expanded to massive retaliatory air strikesthe next morning and thereafter which followedinterceptions by Pakistanis anticipating this action.

This marked the official start of the Indo-Pakistani War of 1971. Prime Minister IndiraGandhi ordered the immediate mobilisation oftroops and launched a full-scale invasion. Thisinvolved Indian forces in a massive coordinated air,sea, and land assault. Indian Air Force started flyingsorties against Pakistan from midnight. The mainIndian objective on the western front was to preventPakistan from entering Indian soil. There was noIndian intention of conducting any major offensiveinto West Pakistan.

India's grip on what had been East Pakistantightened. Hostilities officially ended on 17December, after the fall of Dacca on 15 December.India claimed large gains of territory in WestPakistan (although pre-war boundaries were


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recognised after the war), and the independenceof Pakistan's East wing as Bangladesh wasconfirmed.

Surrender of Pakistani forces in East Pakistan

Faced with insurmountable losses, the Pakistanimilitary capitulated in less than a fortnight. On 16December, the Pakistani forces stationed inEast Pakistan surrendered. The Instrument ofSurrender of Pakistani forces stationed in EastPakistan was signed at Ramna Race Coursein Dhaka at 16.31 IST on 16 December, 1971,by Lieutenant General Jagjit Singh Aurora, GeneralOfficer Commanding-in-chief of Eastern Commandof the Indian Army and Lieutenant GeneralA. A. K. Niazi, Commander of Pakistani forces inEast Pakistan. As Aurora accepted the surrender,the surrounding crowds on the race course beganshouting anti-Niazi and anti-Pakistan slogans.

India took approximately 90,000 prisoners ofwar, including Pakistani soldiers and their EastPakistani civilian supporters. With the end of thewar Bangladesh became an independent nation,the world's fourth most populous Muslimstate. Mujibur Rahman was released from a WestPakistani prison, returning to Dhaka on 10 January,1972 and becoming the first President ofBangladesh and later its Prime Minister.

United States and Soviet Union

The Soviet Union sympathised with theBangladeshis, and supported the Indian Army andMukti Bahini during the war, recognising that theindependence of Bangladesh would weaken theposition of its rivals—the United States and China.The USSR gave assurances to India that if aconfrontation with the United States or Chinadeveloped, it would take counter-measures. Thisassurance was enshrined in the Indo-Sovietfriendship treaty signed in August 1971.

The United States supported Pakistan bothpolitically and materially. President RichardNixon and his Secretary of State Henry Kissingerfeared Soviet expansion into South and SoutheastAsia. Pakistan was a close ally of the People'sRepublic of China, with whom Nixon had beennegotiating a reapprochment and where heintended to visit in February 1972. Nixon fearedthat an Indian invasion of West Pakistan wouldmean total Soviet domination of the region, andthat it would seriously undermine the global

position of the United States and the regionalposition of America's new tacit ally, China. TheNixon administration also ignored reports it receivedof the "genocidal" activities of the Pakistani Armyin East Pakistan.Then-US ambassador to the UnitedNations George H.W. Bush—later 41st President ofthe United States—introduced a resolution in theUN Security Council calling for a ceasefire and thewithdrawal of armed forces by India and Pakistan.It was vetoed by the Soviet Union. The followingdays witnessed a great pressure on the Soviets fromthe Nixon-Kissinger duo to get India to withdraw,but to no avail.

When Pakistan's defeat in the eastern sectorseemed certain, Nixon deployed Task Force 74 ledby the aircraft carrier USS Enterprise into the Bayof Bengal. The Enterprise and its escort ships arrivedon station on 11 December, 1971. On 6 and13 December, the Soviet Navy dispatched twogroups of cruisers and destroyers and a submarinearmed with nuclear missiles from Vladivostok; theytrailed US Task Force 74 into the Indian Oceanfrom 18 December, 1971 until 7 January, 1972. TheSoviets also had a nuclear submarine to help wardoff the threat posed by USS Enterprise taskforce inthe Indian Ocean.

� China

As a long-standing ally of Pakistan, the People'sRepublic of China reacted with alarm to theevolving situation in East Pakistan and the prospectof India invading West Pakistan and Pakistani-controlled Kashmir. Believing that just such anIndian attack was imminent, Nixon encouragedChina to mobilise its armed forces along its borderwith India to discourage it. The Chinese did not,however, respond to this encouragement, becauseunlike the 1962 Sino-Indian War when India wascaught entirely unaware, this time the Indian Armywas prepared and had deployed eight mountaindivisions to the Sino-Indian border to guard againstsuch an eventuality. China instead threw its weightbehind demands for an immediate ceasefire.

When Bangladesh applied for membership tothe United Nations in 1972, China vetoed theirapplication because two United Nations resolutionsregarding the repatriation of Pakistani prisoners ofwar and civilians had not yet been implemented.China was also among the last countries torecognise independent Bangladesh, refusing to doso until 31 August, 1975.


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� Simla Agreement

In 1972, the Simla Agreement was signedbetween India and Pakistan, the treaty ensured thatPakistan recognised the independence ofBangladesh in exchange for the return of thePakistani POWs. India treated all the POWs in strictaccordance with the Geneva Convention, rule1925. It released more than 90,000 Pakistani PoWsin five months.

The accord also gave back more than 13,000 km²of land that Indian troops had seized in WestPakistan during the war, though India retained afew strategic areas. But some in India felt that thetreaty had been too lenient to Bhutto, who hadpleaded for leniency, arguing that the fragiledemocracy in Pakistan would crumble if the accordwas perceived as being overly harsh by Pakistanisand that he would be accused of losing Kashmir inaddition to the loss of East Pakistan.

� State of Emergency (1975–1977)

The Government cited threats to nationalsecurity, as a war with Pakistan had recently beenconcluded. Due to the war and additionalchallenges of drought and the 1973 oil crisis, theeconomy was in bad shape. The Governmentclaimed that the strikes and protests had paralysedthe government and hurt the economy of thecountry greatly. Her Cabinet and government thenrecommended that President Fakhruddin AliAhmed declare a state of emergency because of thedisorder and lawlessness following the AllahabadHigh Court decision. Accordingly, Ahmed declareda State of Emergency caused by internal disorder,based on the provisions of Article 352(1) of theConstitution, on 25 June, 1975.

Within a few months, President's Rule wasimposed on the two opposition party ruled statesof Gujarat and Tamil Nadu thereby bringing theentire country under direct Central rule or bygovernments led by the ruling Congress party.Police were granted powers to impose curfews andindefinitely detain citizens and all publicationswere subjected to substantial censorship bythe Ministry of Information and Broadcasting.Finally, impending legislative assembly electionswere indefinitely postponed, with all opposition-controlled state governments being removed byvirtue of the constitutional provision allowingfor a dismissal of a state government onrecommendation of the state's governor.

� Laws, Human Rights and Elections

Elections for the Parliament and stategovernments were postponed. Gandhi and herparliamentary majorities could rewrite the nation'slaws, since her Congress party had the requiredmandate to do so - a two-thirds majority in theParliament. And when she felt the existing lawswere 'too slow', she got the President to issue'Ordinances' - a law making power in times ofurgency, invoked sparingly - completely bypassingthe Parliament, allowing her to rule by decree. Also,she had little trouble amending the Constitutionthat exonerated her from any culpability in herelection-fraud case, imposing President's Rule inGujarat and Tamil Nadu, where anti-Indira partiesruled (state legislatures were thereby dissolved andsuspended indefinitely), and jailing thousands ofopponents. The 42nd Amendment, which broughtabout extensive changes to the letter and spirit ofthe Constitution, is one of the lasting legacies ofthe Emergency.

A fallout of the Emergency era was - theSupreme Court laid down that, although theConstitution is amenable to amendments (as abusedby Indira Gandhi), changes that tinker with its basicstructure cannot be made by the Parliament.(Kesavananda Bharti case).

Criticism and accusations of the Emergency-eramay be grouped as:

� Detention of people by police withoutcharge or notification of families.

� Abuse and torture of detainees and politicalprisoners.

� Use of public and private media institutions,like the national television network Doordarshan, for government propaganda.

� Forced sterilisation.

� Destruction of the slum and low-incomehousing in the Turkmen Gate and JamaMasjid area of old Delhi.

� Large-scale and illegal enactment of laws(including modifications to the Consti-tution).

The Emergency years were the biggest challengeto India's commitment to democracy, which provedvulnerable to the manipulation of powerful leadersand hegemonic Parliamentary majorities.


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OPERATION BLUE STAR

In the 1977 elections, a coalition led by the Sikh-majority Akali Dal came to power in the northernIndian state of Punjab. In an effort to split theAkali Dal and gain popular support amongthe Sikhs, Indira Gandhi's Congress helped bringthe orthodox religious leader Jarnail SinghBhindranwale to prominence in Punjab politics. Later, Bhindranwale's organization DamdamiTaksal became embroiled in violence with anotherreligious sect called the Sant Nirankari Mission, andhe was accused of instigating the murder of theCongress leader Jagat Narain. After being arrestedin this matter, Bhindranwale disassociated himselffrom Congress and joined hands with the AkaliDal. In July 1982, he led the campaign for theimplemen-tation of the Anandpur Sahib Resolution,which demanded greater autonomy for the Sikh-

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majority state. Meanwhile, a small section of theSikhs including some of Bhindranwale's followers,turned to militancy in support of the Khalistanmovement, which aimed to create a separatesovereign state for the Sikhs. In 1983, Bhindranwaleand his militant followers headquartered themselvesin the Golden Temple, the holiest shrine of the Sikhs,and started accumulating weapons. After severalfutile negotiations, Indira Gandhi ordered theIndian army to enter the Golden temple in order tosubdue Bhindranwale and his followers. In theresulting Operation Blue Star, the shrine wasdamaged and many civilians were killed. The Stateof Punjab was closed to international media, itsphone and communication lines shut. To this daythe events remain controversial with a disputednumber of victims; Sikhs seeing the attack asunjustified and Bhindranwale being declared thegreatest Sikh martyr of the 21st century by AkalTakht (Sikh Political Authority) in 2003.


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COLIACOLIACOLIACOLIACOLIATION (1984-1991)TION (1984-1991)TION (1984-1991)TION (1984-1991)TION (1984-1991)


The Congress party chose Rajiv Gandhi, Indira'solder son as the next Prime Minister. Rajiv hadbeen elected to Parliament only in 1982, and at 40,was the youngest national political leader andPrime Minister ever. But his youth and inexperiencewas an asset in the eyes of citizens tired of theinefficacy and corruption of career politicians, andlooking for newer policies and a fresh start toresolve the country's long-standing problems. TheParliament was dissolved, and Rajiv led theCongress party to its largest majority in history(over 415 seats out of 545 possible), reaping asympathy vote over his mother's assassination.

Rajiv Gandhi initiated a series of reforms -the license raj was loosened, and governmentrestrictions on foreign currency, travel, foreigninvestment and imports decreased considerably.This allowed private businesses to use resourcesand produce commercial goods without govern-ment bureaucracy interfering, and the influx offoreign investment increased India's nationalreserves. As Prime Minister, Rajiv broke from hismother's precedent to improve relations with theUnited States, which increased economic aid andscientific co–operation. Rajiv's encouragement ofscience and technology resulted in a majorexpansion of the telecommunications industry,India's space programme and gave birth tothe software industry and information technologysector.

In December 1984, gas leaks out at UnionCarbide pesticides plant in the central Indian cityof Bhopal. Thousands were killed immediately,many more subsequently died or were left disabled.

India in 1987 brokered an agreement betweenthe Government of Sri Lanka and agreed to deploytroops for peacekeeping operation in Sri Lanka'sethnic conflict lead by the LTTE. Rajiv sent Indiantroops to enforce the agreement and disarmthe Tamil rebels, but the Indian Peace KeepingForce, as it was known, became entangled inoutbreaks of violence - ultimately ending up fightingthe Tamil rebels itself, and becoming a target ofattack from Sri Lankan nationalists. V.P. Singh

withdrew the IPKF in 1990, but thousands of Indiansoldiers had died. Rajiv's departure from Socialistpolicies did not sit well with the masses, who didnot benefit from the innovations. Unemploymentwas a serious problem, and India's burgeoningpopulation added ever-increasing needs fordiminishing resources.

Rajiv Gandhi's image as an honest politicianwas shattered when the Bofors scandal broke,revealing that senior government officials had takenbribes over defence contracts by a Swedish gunsproducer.

ECONOMIC POLICY

He increased government support for scienceand technology and associated industries, andreduced import quotas, taxes and tariffs ontechnology-based industries, especially computers,airlines, defence and telecommunications. In 1986,he announced a National Policy on Education tomodernise and expand higher education programsacross India. He founded the Jawahar NavodayaVidyalaya System in 1986 which is a Centralgovernment based institution that concentrates onthe upliftment of the rural section of the societyproviding them free residential education from 6thtill 12 grade. His efforts created MTNL in 1986,and his public call offices, better known as PCOs,helped spread telephones in rural areas. Heintroduced measures significantly reducingthe Licence Raj, in post-1990 period, allowingbusinesses and individuals to purchase capital,consumer goods and import without bureau-cratic restrictions.

The Seventh Five-Year Plan marked thecomeback of the Congress Party to power. The planlaid stress on improving the productivity level ofindustries by upgrading of technology.

The main objectives of the Seventh Five-YearPlan were to establish growth in areas of increasingeconomic productivity, production of food grains,and generating employment.

As an outcome of the Sixth Five-Year Plan, there


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had been steady growth in agriculture, controls onthe rate of inflation, and favourable balance ofpayments which had provided a strong base forthe Seventh Five-Year Plan to build on the need forfurther economic growth. The Seventh Plan hadstrived towards socialism and energy productionat large. The thrust areas of the Seventh Five-YearPlan were: social justice, removal of oppression ofthe weak, using modern technology, agriculturaldevelopment, anti-poverty programs, full supply offood, clothing, and shelter, increasing productivityof small- and large-scale farmers, and making Indiaan independent economy.

Based on a 15-year period of striving towardssteady growth, the Seventh Plan was focused onachieving the prerequisites of self-sustaining growthby the year 2000. The plan expected the labourforce to grow by 39 million people and employmentwas expected to grow at the rate of 4% per year.

Under the Seventh Five-Year Plan, India stroveto bring about a self-sustained economy in thecountry with valuable contributions from voluntaryagencies and the general populace. The targetgrowth rate was 5.0% and the actual growth ratewas 6.01%.

FOREIGN POLICY

Rajiv Gandhi began leading in a directionsignificantly different from his mother's socialism.He improved bilateral relations with the UnitedStates – long strained owing to Indira's socialismand friendship with the USSR—and expandedeconomic and scientific cooperation.

SECURITY POLICY

Rajiv authorised an extensive police and armycampaign to contain terrorism in Punjab. A stateof martial law existed in the Punjab state, and civilliberties, commerce and tourism were greatlydisrupted. There are many accusations of humanrights violations by police officials as well as by themilitants during this period. It is alleged that evenas the situation in Punjab came under control, theIndian government was offering arms and trainingto the LTTE rebels fighting the government of SriLanka. The Indo-Sri Lanka Peace Accord wassigned by Rajiv Gandhi and the Sri LankanPresident J.R. Jayewardene, in Colombo on 29 July,1987. The very next day, on 30 July, 1987, RajivGandhi was assaulted on the head with a rifle buttby a young Sinhalese naval cadet while receivingthe honour guard.

JANATA DAL

General elections in 1989 gave Rajiv's Congressa plurality, a far cry from the majority whichpropelled him to power.

Power came instead to his former finance andDefence minister, V.P. Singh of Janata Dal. Singhhad been moved from the Finance ministry to theDefence ministry after he unearthed some scandalswhich made the Congress leadership uncom-fortable. Singh then unearthed the Bofors scandal,and was sacked from the party and office. Becominga popular crusader for reform and cleangovernment, Singh led the Janata Dal coalition toa majority. He was supported by BJP and the leftistparties from outside. Becoming Prime Minister,Singh made an important visit to the Golden Templeshrine, to heal the wounds of the past. He startedto implement the controversial Mandal comm-ission report, to increase the quota in reservationfor low caste Hindus. The BJP protested theseimplementations, and took its support back,following which he resigned. Chandra Shekhar splitto form the Janata Dal (Socialist), supported byRajiv's Congress. This new government alsocollapsed in a matter of months, when congresswithdrew its support.

ISSUES

� Sikh Riots and Terrorism in Punjab

Indira Gandhi was assassinated by two Sikhmembers of her security guard. Earlier she hadrejected her security chief's suggestion that all Sikhsbe removed from her security staff. Theassassination of the popular prime minister led toa wave of horror, fear, anger and communaloutrage among people all over the country,especially among the poor. This anger took an uglyand communal form in Delhi and some other partsof North India, where anti-Sikh riots broke out assoon as the news of the assassination spread. Forthree days from the evening of 31 October, mobstook over the streets of Delhi and made Sikhs targetsof violence. There was complete failure of the lawand order machinery in giving protection to Sikhsand their property. The three-day violence in Delhiresulted in the death of more than 2,500 Sikhs. Theslums and resettlement colonies of Delhi were themain scenes of carnage.

Finally, in August 1985, Rajiv Gandhi andLongowal signed the Punjab Accord. The


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government conceded the major Akali demands. Itwas agreed that Chandigarh would be transferredto Punjab and a commission would determinewhich Hindi-speaking terrorists would betransferred from Punjab to Haryana. The riverwater dispute was to be adjudicated by anindependent tribunal. On 20 August, Longowalannounced that the Akalis would participate inthe elections. He was assassinated by the terroristson same day. The Akalis secured an absolutemajority in the state assembly for the first time intheir history.

There was a resurgence in terrorists activities.The militant groups regrouped taking advantageof policies of the Barnala government where thestate government was riven with factionalism andthus was unable to contain them. Soon, the centralgovernment dismissed the Barnala ministry andimposed President's Rule in Punjab in May 1987.Despite this, terrorism in Punjab went on growing.

After 1985 terrorism begun to be openly fundedand supported by Pakistan.

A hard policy towards terrorism was followedfrom mid-1991 onwards by the Narasimha Raogovernment. In February 1992 elections, congresscame into power led by Beant Singh in Punjab.The police became increasingly effective in itsoperations. By 1993, Punjab had been virtuallyfreed of terrorism. Last political heavyweight tosacrifice his life for peace in Punjab was Beant Singh.

Former Punjab Chief Minister Beant Singh wasassassinated in a human bomb attack. DilawarSingh was the human bomb: A Special PoliceOfficer (SPO) with the Punjab Police, he wasassigned the task of assassinating Beant Singh. Hewas wearing an explosive belt underneath hisuniform, reached Beant Singh when the CM hadjust stepped to his car outside assembly and pressedthe trigger. Jagtar Singh Hawara, a member of theBabbar Khalsa International (BKI) terrorist groupheaded by Wadhawa Singh, was the mastermindbehind the whole operation.

� Bofors scandal

Rajiv Gandhi's finance minister, V.P. Singh,uncovered compromising details about governmentand political corruption, to the consternation ofCongress leaders. Transferred to the Defenceministry, Singh uncovered what became known asthe Bofors scandal, involving tens of millions ofdollars – concerned alleged payoffs by theSwedish Bofors arms company through Italian

businessman and Gandhi family associate OttavioQuattrocchi, in return for Indian contracts. Uponthe uncovering of the scandal, Singh was dismissedfrom office, and later from Congress membership.Rajiv Gandhi himself was later personallyimplicated in the scandal. This shattered his imageas an honest politician; he was posthumouslycleared over this allegation in 2004.

Opposition parties united under Singh to formthe Janata Dal coalition. In the 1989 election, theCongress suffered a major setback. With the supportof Indian communists and the Bharatiya JanataParty, Singh and his Janata Dal formed agovernment. Rajiv Gandhi became the Leader ofthe Opposition, while remaining Congresspresident. While some believe that Rajiv andCongress leaders influenced the collapse ofV.P. Singh's government in October 1990 bypromising support to Chandra Shekhar, a high-ranking leader in the Janata Dal, sufficient internalcontradictions existed, within the ruling coalition,especially over the controversial reservation issue,to cause a fall of government. Rajiv's Congressoffered outside support briefly to Chandra Shekhar,who became Prime Minister. They withdrew theirsupport in 1991, and fresh elections wereannounced.

� Sri Lanka policy

Then Sri Lankan Prime Minister RanasinghePremadasa opposed the Indo-Sri Lanka PeaceAccord, but accepted it due to pressure from thenPresident Junius Richard Jayewardene. In January1989, Premadasa was elected President and on aplatform that promised that the Indian PeaceKeeping Force (IPKF) will leave within threemonths. In the 1989 elections, both the Sri LankaFreedom Party and United National Party wantedthe IPKF to withdraw, and they got 95 per cent ofthe vote.

The police action was unpopular in India aswell, especially in Tamil Nadu, as India was fightingthe Tamil separatists. Rajiv Gandhi refused towithdraw the IPKF, believing that the only way toend the civil war was to politically force Premadasaand militarily force the LTTE to accept the accord.Gandhi had concluded a visit to Sri Lanka; thiswas just after the Indian Peace Keeping Force (acontingent of India armed forces sent to Sri Lankato help with their battle against Tamil insurgents)had been recalled and there was a good deal ofresentment that Indian troops had been deployedthere.


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In December 1989, Singh was elected PrimeMinister and completed the pullout. The IPKFoperation killed over 1100 Indian soldiers,5000 Tamil civilians and cost over 100 billion.

� Shah Bano case

In 1985, the Supreme Court of India ruled infavour of Muslim divorcee Shah Bano, declaringthat her husband should give her alimony. A sectionof Muslims in India treated it as an encroachmentin Muslim Personal Law and protested against it.Gandhi agreed to their demands. In 1986, theCongress (I) party, which had an absolute majorityin Parliament at the time, passed an act thatnullified the Supreme Court's judgement in theShah Bano case. This was viewed in India that itis against the fundamental rule of the constitutionthat the law does treat everyone equal and wasseen as a strategy to appease Muslims and garnertheir votes.

� Gorkhaland Territorial Administration

In 1986, the Gorkha National Liberation Front(GNLF) was organized under the leadership ofSubhash Gheising. It started an agitation in the hilldistrict of Darjeeling in West Bengal around thedemand for a separate Gorkha state. Afternegotiations between GNLF and the central andstate governments, a tripartite accord was signedin Calcutta in August 1988, under which the semi-autonomous Darjeeling Gorkha Hill Council cameinto being. The Council had wide control overfinance, education, health, agriculture andeconomic development.

Lately Bimal Gurang’s GJM has emerged as themain political force in the area. A tripartiteagreement paving the way for the setting up of theGorkhaland Territorial Administration (GTA), anelected body for the Darjeeling hills, has beensigned. West Bengal Chief Minister MamataBanerjee and GJM president Bimal Gurung andcentral government were 3 Parties concerned. Thenew set-up will have 50 members: 45 of them willbe elected and the rest nominated.

As large numbers of Gorkhas sang and dancedat the site to celebrate the signing of the accord,there was a complete shutdown in the nearby townof Siliguri and parts of the Dooars and Terai regionson the plains of north Bengal. Mr. Gurung hasreiterated the demand for the inclusion, under theGTA, of the Terai and Dooars regions. A committeeset up for the inclusion of areas in the Dooars andthe Terai has recommended for meager areal

inclusion and this may provide flash point in future.The government will also have to pay attention tothis issue.

The long-running agitation for a Gorkhalandstate in the hills was propelled by ethnic andlinguistic passions. A lesson the West BengalGovernment appears to have picked up from historyis that these passions can often turn disruptiveunless adequately addressed. Hence there is a needto amend Article 371 to provide a constitutionalguarantee to the DGHC rather than continue toaccept its functioning under a State Act. There isalso a need to formulate an approach paper at thepolitical level seeking to safeguard the interests ofthe Gorkhas as a dominant ethnic community witha distinctive social and linguistic identity.

� Janata Dal and Beginning of Coalition Era

General elections in 1989 gave Rajiv's Congressa plurality, a far cry from the majority whichpropelled him to power.

Power came instead to his former finance andDefense minister, V.P. Singh of Janata Dal. Singhhad been moved from the Finance ministry to theDefence ministry after he unearthed some scandalswhich made the Congress leadership uncom-fortable. Singh then unearthed the Bofors scandal,and was sacked from the party and office. Becominga popular crusader for reform and cleangovernment, Singh led the Janata Dal coalition toa majority. He was supported by BJP and the leftistparties from outside. Becoming Prime Minister,Singh made an important visit to the Golden Templeshrine, to heal the wounds of the past. V.P. Singhheld office for slightly less than a year, from 2December, 1989 to 10 November, 1990. After statelegislative elections in March 1990, Singh’sgoverning coalition achieved control of both housesof India’s parliament. During this time, Janata Dalcame to power in five Indian states under OmPrakash Chautala (Banarsi Das Gupta, HukamSingh), Chimanbhai Patel, Biju Patnaik, LalooPrasad Yadav, and Mulayam Singh Yadav, and theNational Front constituents in three more under M. Karunanidhi, N.T. Rama Rao, and PrafullaKumar Mahanta. The Janata Dal also shared powerin Kerala under E.K. Nayanarand in Rajasthanunder Bhairon Singh Shekhawat (supporting theBharatiya Janata Party government from outside).

He started to implement the controversial Mandal commission report, to increase the quotain reservation for low caste Hindus. The BJPprotested these implementations, and took its


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support back, following which he resigned.Chandra Shekhar split to form the Janata Dal(Socialist), supported by Rajiv's Congress. This newgovernment also collapsed in a matter of months,when congress withdrew its support.

ECONOMIC EVENTS

� Annual Plans (1990-1992)

The Eighth Plan could not take off in 1990 dueto the fast changing political situation at the centreand the years 1990-91 and 1991-92 were treatedas Annual Plans. The Eighth Plan was finallylaunched in 1992 after the initiation of structuraladjustment policies.

FOREIGN POLICY

V.P. Singh decided to end the Indian army'sunsuccessful operation in Sri Lanka where RajivGandhi, his predecessor, had sent it to combat theTamil separatist movement.

V.P. Singh faced his first crisis within few daysof taking office: terrorists kidnapped the daughterof his Home Minister, Mufti MohammadSayeed (former Chief Minister of Jammu andKashmir). His government agreed to the demandfor releasing militants in exchange; partly to endthe storm of criticism that followed, he shortlythereafter appointed Jagmohan Malhotra, a formerbureaucrat, as Governor of Jammu and Kashmir,on the insistence of the Bharatiya Janata Party.

In Punjab, Singh replaced the hardline Siddhartha Shankar Ray as Governor with anotherformer bureaucrat, Nirmal Kumar Mukarji, whomoved forward on a timetable for fresh elections.Singh himself made a much-publicized visit tothe Golden Temple to ask forgiveness for OperationBlue Star and the combination of events caused thelong rebellion in Punjab to die down markedly ina few months. V.P. Singh also thwarted the effortsof Pakistan under Benazir Bhutto to start a borderwar with India.

MANDAL COMMISSION REPORT

Singh himself wished to move forwardnationally on social justice-related issues, whichwould in addition consolidate the caste coalitionthat supported the Janata Dal in northern India,and accordingly decided to implement therecommendations of the Mandal Commission which

suggested that a fixed quota of all jobs in the publicsector be reserved for members of the historicallydisadvantaged so-called Other Backward Classes.This decision led to widespread protests among theupper caste youth in urban areas in northern India.OBC reservation (less creamy layer) was upheld bythe Supreme Court in 2008.

RAM TEMPLE ISSUE AND THEFALL OF THE COALITION

Meanwhile, the Bharatiya Janata Party wasmoving its own agenda forward. In particular,the Ram Janmabhoomi agitation, which served asa rallying cry for several radical Hindu organi-zations, took on new life. The party president,L.K. Advani, with Pramod Mahajan as aide, touredthe northern states on a rath – a bus converted tolook like a mythical chariot – with the intention ofdrumming up support. Before he could completethe tour by reaching the disputed site in Ayodhya,he was arrested on Singh's orders at Samastipur onthe charges of disturbing the peace and fomentingcommunal tension. The kar-seva (demolition of themosque and construction of the temple) proposedby Advani on 30 October, 1990 was prevented bystationing troops at the site. This led to theBharatiya Janata Party's suspension of support tothe National Front government.

THE CHANDRA SHEKHARGOVERNMENT

Chandra Shekhar immediately seized themoment and left the Janata Dal with several of hisown supporters. Although Chandra Shekhar hada mere 64 MPs, Rajiv Gandhi the leader of theOpposition, agreed to support him on the floor ofthe House; so he won a confidence motion andwas sworn in as Prime Minister. He lasted only afew months before Congress withdrew support andfresh elections were called.

Rajiv Gandhi, who was rounding off one phaseof campaigning with a late-night meeting inSriperumbudur, forty kilometres from Madras, wasblown to pieces when a young woman, who cameforward to greet him, triggered off a bomb that shehad strapped to her waist. Widely believed, andlater proven, to be the handiwork of LTTE militants.The killing of the forty-six-year-old Rajiv generateda sympathy wave strong enough to give Congress232 seats and the status of the single largest party.


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ECONOMY IN 80S: THEWATERSHED YEARS

Beginning in the late 1970s, successive Indiangovernments sought to reduce state control of theeconomy. Progress toward that goal was slow butsteady, and many analysts attributed the strongergrowth of the 1980s to those efforts. The realizationstarted occurring to country that a situation as usualapproach might have to be changed, but countryneeded a shock to do the course correction, whichcame in early 1990s.

The rate of growth improved in the 1980s. Ahigh rate of investment was a major factor inimproved economic growth. Investment went from

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about 19 per cent of GDP in the early 1970s tonearly 25 per cent in the early 1980s. India,however, required a higher rate of investment toattain comparable economic growth than did mostother low-income developing countries, indicatinga lower rate of return on investments. Part of theadverse Indian experience was explained byinvestment in large, long-gestating, capital-intensiveprojects, such as electric power, irrigation, andinfrastructure. However, delayed completions, costoverruns, and under-use of capacity werecontributing factors. Private savings financed mostof India's investment, but by the mid-1980s furthergrowth in private savings was difficult because theywere already at quite a high level. As a result,during the late 1980s India relied increasingly onborrowing from foreign sources.


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P.V. Narasimha Rao formed what was initiallya minority Congress government on 21 June, 1991but which gradually achieved a majority, and lasteda full five-year term. In the elections, Congress(Indira) won 244 parliamentary seats and puttogether a coalition, returning to power under theleadership of P.V. Narasimha Rao. This Congress-led government, which served a full 5-year term,initiated a gradual process of economic liberalisationand reform, which has opened the Indianeconomy to global trade and investment. India'sdomestic politics also took new shape, as traditionalalignments by caste, creed, and ethnicity gave wayto a plethora of small, regionally-based politicalparties.

But India was rocked by communal violencebetween Hindus and Muslims that killed over 10,000people, following the Babri Mosque demolition byHindu extremists in the course of the RamJanmabhoomi dispute in Ayodhya in 1992.

Suffice it to say that Narasimha Rao’s regime,despite its many achievements which are likely tobe placed in a more favourable light with a longerhistorical perspective, tended to lose steam in thelast two years, with a slowing down of economicreforms, surfacing of corruption charges and the‘hawala’ scandal which led to charges, later foundto be almost entirely unsustainable, of bribes andforeign exchange violations against many Congressand opposition leaders.

ECONOMIC CRISIS AND INITIATIONOF LIBERALIZATION

� Eighth Five Year Plan (1992–1997)

1989–91 was a period of economic instability inIndia and hence no five-year plan was implemented.Between 1990 and 1992, there were only AnnualPlans. In 1991, India faced a crisis in foreignexchange (forex) reserves, left with reserves of onlyabout US $1 billion. Thus, under pressure, thecountry took the risk of reforming the socialisteconomy. P.V. Narasimha Rao was the ninth PrimeMinister of the Republic of India and head

of Congress Party, and led one of the mostimportant administrations in India's modern history,overseeing a major economic transformation andseveral incidents affecting national security. At thattime Dr. Manmohan Singh (former Prime Ministerof India) launched India's free market reforms thatbrought the nearly bankrupt nation back from theedge. It was the beginning of privatization and liberalisation in India.

Modernization of industries was a majorhighlight of the Eighth Plan. Under this plan, thegradual opening of the Indian economy wasundertaken to correct the burgeoning deficit andforeign debt. Meanwhile India became a memberof the World Trade Organization on 1 January,1995. This plan can be termed the Rao andManmohan model of economic development. Themajor objectives included, controlling populationgrowth, poverty reduction, employment generation,strengthening the infrastructure, institutionalbuilding, tourism management, human resourcedevelopment, involvement of Panchayati Raj, NagarPalikas, NGOs, decentralisation and people'sparticipation.

� Economic reforms

Rao decided that India, which in 1991 was onthe brink of bankruptcy, would benefit from liberalising its economy. He appointed an econo-mist, Dr. Manmohan Singh, a former governor ofthe Reserve Bank of India, as Finance Minister toaccomplish his goals. This liberalization wascriticized by many socialist nationalists at that time.

Adopted to avert impending 1991 economiccrisis, the reforms progressed furthest in the areasof opening up to foreign investment, reforming capital markets, deregulating domestic business,and reforming the trade regime. Rao's government'sgoals were reducing the fiscal deficit, Privatizationof the public sector and increasing investment ininfrastructure. Trade reforms and changes in theregulation of foreign direct investment wereintroduced to open India to foreign trade whilestabilising external loans. Rao wanted I.G. Patel ashis Finance Minister. Patel was an official who

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helped prepare 14 budgets, an ex-governor ofReserve Bank of India and had headed The LondonSchool of Economics and Political Science. But Pateldeclined. Rao then chose Manmohan Singh for thejob. Manmohan Singh, an acclaimed economist,played a central role in implementing these reforms.

Major reforms in India's capital markets led toan influx of foreign portfolio investment. The majoreconomic policies adopted by Rao include:

� Abolishing in 1992 the Controller of CapitalIssues which decided the prices and numberof shares that firms could issue.

� Introducing the SEBI Act, 1992 and theSecurity Laws (Amendment) whichgave SEBI the legal authority to register andregulate all security market intermediaries.

� Opening up in 1992 of India's equitymarkets to investment by foreigninstitutional investors and permitting Indianfirms to raise capital on internationalmarkets by issuing Global DepositoryReceipts (GDRs).

� Starting in 1994 of the National StockExchange as a computer-based tradingsystem which served as an instrument toleverage reforms of India's other stockexchanges. The NSE emerged as India'slargest exchange by 1996.

� Reducing tariffs from an average of 85 percent to 25 per cent, and rolling backquantitative controls. (The rupee was madeconvertible on trade account.)

� Encouraging foreign direct investment byincreasing the maximum limit on share offoreign capital in joint ventures from 40 to51% with 100% foreign equity permitted inpriority sectors.

� Streamlining procedures for FDI approvals,and in at least 35 industries, automaticallyapproving projects within the limits forforeign participation.

The impact of these reforms may be gaugedfrom the fact that total foreign investment (includingforeign direct investment, portfolio investment, andinvestment raised on international capital markets)in India grew from a minuscule US $132 million in1991–92 to $5.3 billion in 1995–96. Rao beganindustrial policy reforms with the manufacturingsector. He slashed industrial licensing, leaving only18 industries subject to licensing. Industrialregulation was rationalised.

NATIONAL SECURITY, FOREIGNPOLICY AND CRISIS MANAGEMENT

Rao energised the national nuclear security and ballistic missiles program, which ultimatelyresulted in the 1998 Pokhran nuclear tests. Heincreased military spending, and set the IndianArmy on course to fight the emerging threat ofterrorism and insurgencies, as well as Pakistanand China's nuclear potentials. It was during histerm that terrorism in the Indian state of Punjabwas finally defeated. Also scenarios of aircrafthijackings, which occurred during Rao's time endedwithout the government conceding the terrorists'demands. He also directed negotiations to securethe release of Doraiswamy, an Indian Oil executive,from Kashmiri terrorists who kidnapped him, andLiviu Radu, a Romanian diplomat posted inNew Delhi in October 1991, who was kidnappedby Sikh terrorists. Rao also handled the Indianresponse to the occupation of the Hazratbal holyshrine in Jammu and Kashmir by terrorists inOctober 1993. He brought the occupation to an endwithout damage to the shrine. Similarly, he dealtwith the kidnapping of some foreign tourists by aterrorist group called Al Faran in Kashmir in 1995effectively. Although he could not secure the releaseof the hostages, his policies ensured that theterrorists demands were not conceded to, and thatthe action of the terrorists was condemnedinternationally, including Pakistan.

Rao also made diplomatic overtures to WesternEurope, the United States, and China. He decidedin 1992 to bring into the open India's relationswith Israel, which had been kept covertly activefor a few years during his tenure as a ForeignMinister, and permitted Israel to open an embassyin New Delhi. He ordered the intelligencecommunity in 1992 to start a systematic drive todraw the international community's attention toalleged Pakistan's sponsorship of terrorism againstIndia and not to be discouraged by US efforts toundermine the exercise. Rao launched the LookEast foreign policy, which brought India closerto ASEAN. He decided to maintain a distance fromthe Dalai Lama in order to avoid aggravatingBeijing's suspicions and concerns, and madesuccessful overtures to Tehran. The 'cultivate Iran'policy was pushed through vigorously by him.These policies paid rich dividends for India inMarch 1994, when Benazir Bhutto's efforts to havea resolution passed by the UN Human Rights


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Commission in Geneva on the human rightssituation in Jammu and Kashmir failed, withopposition by China and Iran.

Rao's crisis management after the 12 March,1993 Bombay bombings was highly praised. Hepersonally visited Bombay after the blasts and afterseeing evidence of Pakistani involvement in theblasts, ordered the intelligence community to invitethe intelligence agencies of the US, UK and otherWest European countries to send their counter-terrorism experts to Bombay to examine the factsfor themselves.

� Handling of separatist movements

Rao has successfully decimated the Punjabseparatist movement and neutralised Kashmirseparatist movement. It is said that Rao was 'solelyresponsible' for the decision to hold elections inPunjab. Rao's government introduced the Terroristand Disruptive Activities (Prevention) Act(TADA), India's first anti-terrorism legislation, anddirected the Indian Army to eliminate theinfiltrators. Despite a heavy and largely successfulArmy campaign, the state descended into a securitynightmare. Tourism and commerce were largelydisrupted.

� BABRI MASJID DEMOLITION

A mosque was built by a governor of Babur atAyodhya (in Uttar Pradesh) in the early sixteenthcentury. Some Hindus claimed in the nineteenthcentury that it was built over a site which was theplace where Ram was born and where a Ramtemple had existed. Issue came to forefront inDecember 1949 when a district magistrate permitteda few Hindus to enter the mosque and install idolsof Sita and Ram there. Sardar Patel, as the HomeMinister, and Jawaharlal Nehru condemmed thedistrict magistrate's action, but the Uttar Pradeshgovernment felt that it could not reverse thedecision. However, it locked the mosque. Thesituation was more or less accepted by all as atemporary solution for the period of the dispute inthe court.

In 1983, VHP started a public campaigndemanding the 'liberation' of the Ram Janmab-hoomi, which would entail the demolition of themosque and the erection of a Ram temple in itsplace. Many political parties and groups did notdo anything to counter the campaign; they justignored it. On 1 February, 1986, the district judgereopened the mosque, gave Hindu priests itspossession, and permitted Hindus to worship there.

The Hindu communalists demanded the demolitionof the mosque and the construction of a Ram templeon its site.

In 1989, the VHP, keeping in view theimpending Lok Sabha elections, organized amassive movement to start the construction of aRam temple at the site where the Babri mosquestood. As a part of that objective, it gave a call forthe collection of bricks, sanctified by water fromthe river Ganges, from all over the country to betaken to Ayodhya.

To popularize the objective, it organized in 1990an all-India rath yatra headed by its President,L.K. Advani. The yatra aroused fierce communalpassions and was followed by communal riots inlarge number of places. Thousands of BJP-VHPvolunteers gathered at Ayodhya at the end ofOctober 1990, despite the Uttar Pradesh govern-ment, headed by Mulayam Singh Yadav, banningthe rally. To disperse the volunteers and to preventthem from harming the mosque, the police openedfire on them, killing and injuring over a hundredpersons. The BJP-VHP organized a huge rally ofover 200,000 volunteers at the site of the mosqueon 6 December, 1992, with the major leaders ofthe two organizations being present.

To allay the fears of injury to the mosque,Kalyan Singh BJP chief minister of UP, gave anassurance to the Supreme Court that the mosquewould be protected. In spite of the assurance, thevolunteers set out to demolish the mosque withhammer blows, while government looked on. Theentire country was shocked. Communal riots brokeout in many parts of the country, the worst hitbeing Bombay, Calcutta and Bhopal. The riots inBombay lasted for nearly a month. In all more than3,000 people were killed in the riots all over India.

� MUMBAI RIOTS and 1993 BLASTS

It is 20 years since two cataclysmic events shookBombay now Mumbai. First—the communalcarnage spread over two months—Second, theserial blasts of March 12, 1993, with which terrorcame home to the city and claiming innocent lives.The Srikrishna Commission, in its final report, saidthe riots appeared to have been a causative factorfor the bomb blasts. Supreme Court has finallydisposed of appeals by death row convicts and actorSanjay Dutt in the March 12, 1993 serial blastscase on March 21, 2013.

� Latur earthquake

In 1993, a strong earthquake in Latur, Maharashtra killed nearly 10,000 people and


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displaced hundreds of thousands. Rao wasapplauded by many for using modern technologyand resources to organize major relief operationsto assuage the stricken people, and for schemesof economic reconstruction.

CORRUPTION CHARGES ANDACQUITTAL

In July 1993, Rao's government was facing a no-confidence motion, because the opposition felt thatit did not have sufficient numbers to prove amajority. It was alleged that Rao, through arepresentative, offered millions of rupees tomembers of the Jharkhand Mukti Morcha (JMM),and possibly a breakaway faction of the Janata Dal,to vote for him during the confidence motion. Before his death, Rao was acquitted of all the casescharged against him.

In the 1996 general elections, Rao's CongressParty was badly defeated and he had to step downas Prime Minister. He retained the leadership ofthe Congress party until late 1996 after which hewas replaced by Sitaram Kesri. Suffice it to say thatNarasimha Rao’s regime, despite its manyachievements which are likely to be placed in amore favourable light with a longer historicalperspective, tended to lose steam in the last twoyears, with a slowing down of economic reforms,surfacing of corruption charges and the ‘hawala’scandal which led to charges, later found to bealmost entirely unsustainable, of bribes and foreignexchange violations against many Congress andopposition leaders. The elections held in 1996 ledto Congress winning only 140 seats and BJPincreasing its tally to 161 from 120 in 1991. A short-lived BJP government lasted from 16 May to 1 June,but failed to get majority support. A United Frontgovernment followed this with H.D. Deva Gowdaas Prime Minister supported by Congress and CPMin which CPI joined as a partner and India got herfirst Communist home minister in Indrajit Gupta.Congress withdrew support on 30 March, 1997,failed to form a government, and again supporteda United Front government, this time withL.K. Gujral as Prime Minister. The support waswithdrawn again and fresh elections held inFebruary 1998 that led to the formation of BJP-ledgovernment with Atal Behari Vajpayee as PrimeMinister, as BJP, with 182 seats had the support ofparties like the TDP, AIADMK and TrinamulCongress. The Bharatiya Janata Party (BJP) emerged

from the May 1996 national elections as the single-largest party in the Lok Sabha but without enoughstrength to prove a majority on the floor of thatParliament. Under Prime Minister Atal BihariVajpayee, the BJP coalition lasted in power 13 days.With all political parties wishing to avoid anotherround of elections, a 14-party coalition led bythe Janata Dal emerged to form a governmentknown as the United Front. A United Frontgovernment under former Chief Minister ofKarnataka, H.D. Deve Gowda lasted less than ayear. The leader of the Congress Party withdrewhis support in March 1997. Inder KumarGujral replaced Deve Gowda as the consensuschoice for Prime Minister of a 16-party United Frontcoalition. In November 1997, the Congress Partyagain withdrew support for the United Front. Newelections in February 1998 brought the BJP thelargest number of seats in Parliament (182), butthis fell far short of a majority.

GUJRAL DOCTRINE

The Gujral Doctrine is a set of five principles toguide the conduct of foreign relations withIndia’s immediate neighbours, notably Pakistan, asspelt out by Gujral. The United Front Government’sneighbourhood policy stood on five basic principles:First, with the neighbours like Nepal, Bangladesh,Bhutan, Maldives and Sri Lanka, India does notask for reciprocity but gives all that it can in goodfaith and trust. Secondly, no South Asian countrywill allow its territory to be used against the interestof another country of the region. Thirdly, none willinterfere in the internal affairs of another. Fourthly,all South Asian countries must respect each other’sterritorial integrity and sovereignty. And finally,settling all their disputes through peaceful bilateralnegotiations.

The logic behind the Gujral Doctrine was thatsince India had to face two hostile neighbours inthe north and the west, so it had to be at ‘totalpeace’ with all other immediate neighbours in orderto contain Pakistan’s and China’s influence in theregion.

Following a series of attacks attributed by theIndian media and government to originating fromand planned in Pakistan throughout the 2000s,culminating with the 2008 Mumbai attacks, theGujral Doctrine was criticised by the Indian media.However, it was also praised in the media.

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In November 1997, the Congress Party againwithdrew support for the United Front. Newelections in February 1998 brought the BJP thelargest number of seats in Parliament (182), butthis fell far short of a majority. On 20 March, 1998,the President inaugurated a BJP-led coalitiongovernment with Vajpayee again serving as PrimeMinister. On 11 and 13 May, 1998, this governmentconducted a series of underground nuclear weaponstests which caused Pakistan to conduct its owntests that same year. India's nuclear tests promptedPresident of the United States Bill Clinton and Japanto impose economic sanctions on India pursuant tothe 1994 Nuclear Proliferation Prevention Act andled to widespread international condemnation.

In the early months of 1999, Prime MinisterVajpayee made a historic bus trip to Pakistan andmet with Pakistan's Prime Minister Nawaz Sharif,and signed the bilateral Lahore peace declaration.

In April 1999, the coalition government led bythe Bharatiya Janata Party (BJP) fell apart, leadingto fresh elections in September. In May and June1999, India discovered an elaborate campaign ofterrorist infiltration that resulted in the KargilWar in Kashmir, derailing a promising peaceprocess that had begun only three months earlierwhen Prime Minister Vajpayee visited Pakistan,inaugurating the Delhi-Lahore bus service. Indianforces killed Pakistan-backed infiltrators andreclaimed important border posts in high-altitudewarfare.

Soaring on popularity earned following thesuccessful conclusion of the Kargil conflict,the National Democratic Alliance - a new coalitionled by the BJP - gained a majority to form agovernment with Vajpayee as Prime Minister inOctober 1999. End of the millennium wasdevastating to India, as a cyclone hit Orissa, killingat least 10,000 under Vajpayee Government.

In 2000 May, India's population exceeded1 billion. President of the United States BillClinton made a groundbreaking visit to India toimprove ties between the two nations. In January,massive earthquakes hit Gujarat state, killing at least30,000.

Prime Minister Vajpayee met with Pakistan'sPresident Pervez Musharraf in the first summitbetween Pakistan and India in more than two yearsin middle of 2001. But, the meeting failed withouta breakthrough or even a joint statement becauseof differences over Kashmir region

Following the 11 September attacks, the UnitedStates lifted sanctions which it imposed againstIndia and Pakistan in 1998. The move was seen asa reward for their support for the War on Terror.India and Pakistan agreed to resume direct air linksand to allow overflights and a groundbreakingmeeting was held between the Indian governmentand moderate Kashmir separatists. The GoldenQuadrilateral project aimed to link India's cornerswith a network of modern highways.

ECONOMIC POLICY

� Ninth Five-Year Plan (1997–2000)

The Ninth Five-Year Plan came after 50 yearsof Indian Independence. Atal Bihari Vajpayee wasthe Prime Minister of India during the Ninth Five-Year Plan. The Ninth Five-Year Plan tried primarilyto use the latent and unexplored economic potentialof the country to promote economic and socialgrowth. It offered strong support to the socialspheres of the country in an effort to achieve thecomplete elimination of poverty. The satisfactoryimplementation of the Eighth Five-Year Plan alsoensured the states' ability to proceed on the path offaster development. The Ninth Five-Year Plan alsosaw joint efforts from the public and the privatesectors in ensuring economic development of thecountry. In addition, the Ninth Five-Year Plan sawcontributions towards development from the generalpublic as well as governmental agencies in boththe rural and urban areas of the country. Newimplementation measures in the form of SpecialAction Plans (SAPs) were evolved during the NinthFive-Year Plan to fulfil targets within the stipulatedtime with adequate resources. The SAPs coveredthe areas of social infrastructure, agriculture,information technology and Water policy.


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� Budget

The Ninth Five-Year Plan had a total publicsector plan outlay of Rs. 8,59,200 crores. The NinthFive-Year Plan also saw a hike of 48% in terms ofplan expenditure and 33% in terms of the planoutlay in comparison to that of the Eighth Five-Year Plan. In the total outlay, the share of the centrewas approximately 57% while it was 43% for thestates and the union territories.

The Ninth Five-Year Plan focused on therelationship between the rapid economic growthand the quality of life for the people of the country.The prime focus of this plan was to increase growthin the country with an emphasis on social justiceand equity. The Ninth Five-Year Plan placedconsiderable importance on combining growthoriented policies with the mission of achieving thedesired objective of improving policies which wouldwork towards the improvement of the poor in thecountry. The Ninth Five-Year Plan also aimed atcorrecting the historical inequalities which were stillprevalent in the society.

Objectives

The main objective of the Ninth Five-Year Planwas to correct historical inequalities and increasethe economic growth in the country. Other aspectswhich constituted the Ninth Five-Year Plan were:

� Population control.

� Generating employment by giving priorityto agriculture and rural development.

� Reduction of poverty.

� Ensuring proper availability of food andwater for the poor.

� Availability of primary healthcare facilitiesand other basic necessities.

� Primary education to all children in thecountry.

� Empowering the socially disadvantagedclasses like Scheduled castes, Scheduledtribes and other backward classes.

� Developing self-reliance in terms ofagriculture.

� Acceleration in the growth rate of theeconomy with the help of stable prices.

Strategies

� Structural transformations and develop-ments in the Indian economy.

� New initiatives and initiation of correctivesteps to meet the challenges in the economyof the country.

� Efficient use of scarce resources to ensurerapid growth.

� Combination of public and private supportto increase employment.

� Enhancing high rates of export to achieveself-reliance.

� Providing services like electricity, telecomm-unication, railways, etc.

� Special plans to empower the sociallydisadvantaged classes of the country.

� Involvement and participation of PanchayatiRaj institutions/bodies and Nagar Palikasin the development process.

Performance

� The Ninth Five-Year Plan achieved a GDPgrowth rate of 5.4% against a target of 6.5%.

� The agriculture industry grew at a rate of2.1% against the target of 4.2%.

� The industrial growth in the country was4.5% which was higher than that of thetarget of 3%.

� The service industry had a growth rate of7.8%.

� An average annual growth rate of 6.7%was reached.

The Ninth Five-Year Plan looks through the pastweaknesses in order to frame the new measuresfor the overall socio-economic development of thecountry. However, for a well-planned economy ofany country, there should be a combinedparticipation of the governmental agencies alongwith the general population of that nation. Acombined effort of public, private, and all levels ofgovernment is essential for ensuring the growth ofIndia's economy.

The target growth was 7.1% and the actualgrowth was 6.8%.

NATIONAL HIGHWAY PROJECT,FOREIGN POLICY AND ECONOMIC

REFORMS

During his administration, Vajpayee introducedmany domestic economic and infrastructuralreforms, including encouraging the private sector


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and foreign investments, reducing governmentalwaste, encouraging research and development andprivatisation of some government owned corpo-rations. Vajpayee's pet projects were the NationalHighway Development Project and Pradhan MantriGram Sadak Yojana.

In March 2000, Bill Clinton, the President of theUnited States, paid a state visit to India. His wasthe first state visit to India by a U.S. President in22 years. President Clinton's visit to India was hailedas a significant milestone in the relations betweenthe two countries. Since the visit came barely twoyears after the Pokhran tests, and one year afterthe Kargil invasion and the subsequent coup inPakistan, it was read to reflect a major shift in thepost-Cold War U.S. foreign policy. The Indian PrimeMinister and the U.S. President discussed strategicissues, but the major achievement was a significantexpansion in trade and economic ties. The HistoricVision Document on the future course of relationsbetween the two countries was signed byPrime Minister Vajpayee and President Clintonduring the visit.

Vajpayee promoted pro-business, free marketreforms to reinvigorate India's economictransformation and expansion that were startedby the former PM Narasimha Rao but stalled after1996 due to unstable governments and the 1997Asian financial crisis. Increased competitiveness,extra funding and support for the informationtechnology sector and high-tech industries,improvements in infrastructure, deregulation oftrade, investments and corporate laws—allincreased foreign capital investment and set inmotion an economic expansion.

These couple of years of reform however wereaccompanied by infighting in the administrationand confusion regarding the direction ofgovernment. Vajpayee's weakening health was alsoa subject of public interest, and he underwent amajor knee-replacement surgery at the BreachCandy Hospital in Mumbai to relieve great pressureon his legs.

Vajpayee again broke the ice in the Indo-Pakrelations by inviting Pakistani President PervezMusharraf to Delhi and Agra for a joint summitand peace talks. His second major attempt to movebeyond the stalemate involved inviting the manwho had planned the Kargil invasions. Butaccepting him as the President of Pakistan, Vajpayeechose to move forward. But after three days ofmuch fanfare, which included Musharraf visiting

his birthplace in Delhi, the summit failed to achievea breakthrough as President Musharraf declined toleave aside the issue of Kashmir.

In 2001, the Vajpayee government launched thefamous Sarva Shiksha Abhiyan, which aimed atimproving the quality of education in primary andsecondary schools.

� Nuclear tests (Operation Shakti)

In May 1998, India conducted five undergroundnuclear tests in Pokhran desert in Rajasthan, 24 yrsafter India conducted its first nuclear testPokhran-I in 1974. This test was called Pokhran-II.The tests were held just a month after thegovernment had been in power. Two weekslater, Pakistan respo-nded with its own nuclear testsmaking it the newest declared nation with nuclearweapons.

While some nations, such as Russia and France,endorsed India's right to defensive nuclearpower, others including the United States, Canada,Japan, Britain and the European Union imposedsanctions on information, resources and technologyto India. In spite of the intense internationalcriticism and the steady decline in foreigninvestment and trade, the nuclear tests werepopular domestically. Effectively the internationalsanctions failed completely in swaying India'sdecision to weaponize their nuclear capability,something that was planned for and anticipatedby the Vajpayee administration.

� The Lahore summit

In late 1998 and early 1999, Vajpayee began apush for a full-scale diplomatic peace process withPakistan. With the historic inauguration of theDelhi-Lahore bus service in February 1999,Vajpayee initiated a new peace process aimedtowards permanently resolving the Kashmir disputeand other conflicts with Pakistan. The resultantLahore Declaration espoused a commitment todialogue, expanded trade relations and mutualfriendship and envisaged a goal of denuclearisedSouth Asia. This eased the tension created by the1998 nuclear tests, not only within the two nationsbut also in South Asia and the rest of the world.

� Kargil War

Even during his previous governmentalexperience as the external affairs minister of India,Vajpayee had sought to redefine India’s relationwith its neighbors. As the prime minister of Indiahe made similar attempts that ultimately proved


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futile. In order to improve the relationship withPakistan, Vajpayee embarked upon a historic busjourney that was to take him to Lahore. On crossingthe Wagah border post, he was given a warmReception by the then Prime Minister of PakistanNawaz Sharif. The mask of love and brotherhoodthat Pakistan wore that day had a much deepermeaning, since Pakistani establishment was moreinterested in riding a bus to Kargil than the bus offriendship.

The two countries signed, what became knownas Lahore declaration. Emphasis was laid on solvingthe disputes between them through negotiations.Hopes were seen of a bright future, visions werecreated. But all the euphoria led nowhere,ultimately Lahore proved to be the biggest blunderin Vajpayee’s career.

An extremely cold place, Kargil is often termedas a no-mans land. With very little humanhabitation what could be seen there is snow-tippedmountainous terrain and Indian army trucks criss-crossing Kargil on its way to Ladakh. StrategicallyKargil is highly important for India, as it is theonly road connection between the Kashmir valleyand Ladakh. For Indian army it is the supply routefor all the essential items needed to survive inLadakh and Siachen. Siachen has been the bone ofcontention between both India and Pakistan.Overlooking Karakoram pass, which connectsPakistan Occupied Kashmir (POK) with China,Siachen has been under Indian occupation since80s. Repeated attempts by Pakistan to capture theglacier have failed. Kargil was an attempt byPakistan, to cut supply routes to Siachen andultimately wrest it from India. It was a carefullythought out strategy of the Pakistani militaryestablishment. Using Afghani and Sudanesemercenaries, backed by the regular Pakistani army,it infiltrated and captured the heights near theSrinagar–Leh national highway. The plan was touse these heights to capture the highway, ultimatelycutting off the supply routes to Siachen andLadakh. The infiltration was a slow process in orderto prevent Indian armed forces from detecting it. Itstarted soon after the Lahore bus journey ofVajpayee. By April 1999, the infiltration hadreached dangerous proportions. Government wastaken by surprise when few army men on routinemission of touring the checkposts in the borderingareas of Kargil went missing. Soon aerial surveysfor the missing revealed huge illegal bunkers createdin hilltops. It was clear that Pakistan had againbackstabbed and all the hard works of Lahore had

been in vain. Vajpayee Government had in themeanwhile been reduced to the status of a caretakergovernment by the whims of Sonia Gandhi andJayalalitha. After loosing the majority in the floorof the house by just one vote, Vajpayee hadresigned. But repeated attempts by combinedopposition to form a government proved futile.Ultimately Lok Sabha was dissolved and electionswere to be held under Vajpayee’s caretakergovernment. But unexpected events of Kargil forcedthe election commission to postpone the electionsfor the time being. What seemed to ordinary Indiansas a routine attempt by Pakistani Army to push inmilitants in Kashmir valley, turned out to be a full-scale war when Indian Air Force started carryingout repeated air raids over the hillocks of Kargil.

Afghani mercenaries, who had become ruggedand war-crazy after so many years of successfulstruggle against the Russians in Afghanistan hadcamped over large number of strategically placedhills in and around Kargil region. Removing themusing conventional methods would have beenimpossible, finding no other alternativesPrime Minister Vajpayee ordered lightening airraids over those bunkers. The air raids werefollowed by military push. Guns like Bofors wereused for the first time by the armed forces.

Heavy bombardment both by the Indian Armyand the Air Force destroyed the capabilities of theAfghani mercenaries and also dashed the hopes ofPakistan, which dreamt of repeating Afghanistanin Kashmir too.

� Indian Airlines hijack

A national crisis emerged in December 1999,when Indian Airlines flight IC-814 fromKathmandu to New Delhi was hijacked by fiveterrorists and flown to Taliban-ruled Afghanistan.The hijackers made several demands including therelease of certain terrorists like Maulana MasoodAzhar from prison. Under extreme pressure, thegovernment ultimately caved in. Jaswant Singh, theMinister for External Affairs at the time, flew withthe terrorists to Afghanistan and exchanged themfor the passengers.

� Attack on Indian Parliament

The 2001 Indian Parliament attack was a high-profile attack on the Parliament of India, housingin New Delhi by Lashkar-e-Taiba and Jaish-e-Mohammed terrorists. The attack led to the deathof a dozen people, including one civilian and toincreased tensions between India and Pakistan,


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resulting in 2001–2002 India-Pakistan standoff. On13 December, 2001, five terrorists infiltrated theParliament House in a car with Home Ministryand Parliament labels. While both the Rajya Sabhaand Lok Sabha had been adjourned 40 minutesprior to the incident, many Members of Parliament(MPs) and government officials were believed tohave still been in the building at the time of theattack.

One gunman's suicide vest exploded when hewas shot dead; the other four gunmen were alsokilled. Five policemen, a Parliament security guard,and a gardener were killed, and 18 others wereinjured. The ministers and MPs escaped unhurt.

Indian Government initially accused Lashkar-e-Taiba and Jaish-e-Mohammed to be involved inthis attack. However, Lashkar-e-Taiba denied anyinvolvement in the incident. In December 2002, fourJeM members were caught by Indian authoritiesand put on trial. All four were found guilty ofplaying various roles in the incident, although thefourth, Afsan/Navjot Sandhu, wife of ShaukatHussain (one of the accused) was found guilty ofa minor charge of concealing knowledge ofconspiracy. One of the accused, Afzal Guru, was

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sentenced to the death penalty for the incident.

� Godhra Train Burning and Gujrat Riots

The story began on the morning of 27 Februaryat Godhra town in Gujarat, where a bogy of theSabarmati Express caught fire. 58 people, including15 women and 20 children, were burnt to death inthe fire. The victims were all Hindus, Karsevaks orvolunteers returning from participating in a yagyaor religious ceremony at Ayodhya.

On 28 February began a wave of communalriots that continued for almost three months. Thepolice and administration allegedly looked the otherway or even connived and helped. Many observershave remarked that what distinguished the eventsof 2002 was that, unlike a typical riot situation inwhich two groups engage in, usually spontaneous,violence, the assault was one-sided, premeditated,brutal, and supported or facilitated by the state.The Gujarat events shook the conscience of thenation. Many high profile cases are being fought incourts and it is believed by many that judiciaryalongwith certain well-known faces are fightingthe seemingly eternal fight against the biggestenemy of State i.e., Communalism.


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In January 2004, Prime Minister Vajpayeerecommended early dissolution of the LokSabha and general elections. The Congress Party-led alliance won in elections held in May2004. Manmohan Singh became the Prime Minister.The Congress formed a coalition called the UnitedProgressive Alliance with Socialist and regionalparties, and enjoyed the outside support ofIndia's Communist parties. Manmohan Singhbecame the first Sikh and non-Hindu to date to holdIndia's most powerful office. Mr. Singh continuedeconomic liberalisation, although the need forsupport from Indian Socialists and Communistsforestalled further privatisation for some time.

By the end of the year 2004, India began towithdraw some of its troops from Kashmir. Andby middle next year the Srinagar-Muzaffarabad BusService was inaugurated, the first in 60 years tooperate between Indian-administered andPakistani-administered Kashmirs.

In 2006 February, the United ProgressiveAlliance government launched India's largest-everrural jobs scheme, aimed at lifting around 60 millionfamilies out of poverty.

United States and India signed a major nuclearco-operation agreement during a visit by UnitedStates President George W. Bush in 2006 March.According to the nuclear deal, the United Stateswill give India access to civilian nuclear technologywhile India agrees to greater scrutiny for its nuclearprogramme. Later United States approved acontroversial law allowing India to buy theirnuclear reactors and fuel for the first time in 30years. In 2008 July, the United Progressive Alliancesurvived a vote of confidence brought after left-wingparties withdraw their support over the nucleardeal. After the vote, several left-wing and regionalparties form new alliance to oppose government,saying it has been tainted by corruption. Withinthree months, following approval by the AmericanCongress, George W. Bush signed into law a nucleardeal with India, which ended a three-decade banon American nuclear trade with Delhi.

In 2007, India got its first female sworn in

President, Pratibha Patil. In 2008 October, Indiasuccessfully launched its first mission to the moon,the unmanned lunar probe called Chandrayaan-1.In the previous year, India had launched its firstcommercial space rocket, carrying an Italiansatellite.

In November 2008, Mumbai attacks took placeand India blamed militants from Pakistan for theattacks and announced "pause" in the ongoingpeace process. In the Indian General Election in2009, the United Progressive Alliance won aconvincing and resounding 262 seats, withCongress alone winning 206 seats. In mid-2011, Anna Hazare, a prominent social activist,staged a 12-day hunger strike in Delhi in protest atstate corruption, after government proposals totighten up the anti-graft legislation which fell shortof his demands.

Despite all this, India showed great promisewith a higher growth rate in Gross domesticproduct. In January 2011, India assumed a non-permanent seat in the United Nations SecurityCouncil for the 2011-12 term. In 2004, India hadlaunched an application for a permanent seat onthe UN Security Council alongwith Brazil, Germanyand Japan.

However, 21st century India is facing theNaxalite-Maoist rebels, in the words of PrimeMinister Manmohan Singh, India's greatest internalsecurity challenge and other terrorist tensions. Indiain the new millennium, improved relations withmany countries and foreign unions including theUnited States, the European Union, Israel and thePeople's Republic of China.

ECONOMIC POLICY

Following the advice of International MonetaryFund in 1991, Singh as Finance Minister, freed Indiafrom the Licence Raj, source of slow economicgrowth and corruption in the Indian economy fordecades. He liberalised the Indian economy,allowing it to speed up development dramatically.During his term as Prime Minister, Singh continued


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to encourage growth in the Indian market, enjoyingwidespread success in these matters. Singh, alongwith the former Finance Minister, P. Chidambaram,have presided over a period where the Indianeconomy has grown with an 8–9% economicgrowth rate. In 2007, India achieved its highestGDP growth rate of 9% and became the secondfastest growing major economy in the world.

Singh's government has continued the GoldenQuadrilateral and the highway modernisationprogram that was initiated by Vajpayee's govern-ment. Singh has also been working on reformingthe banking and financial sectors, as well as publicsector companies. The Finance ministry has beenworking towards relieving farmers of their debtand has been working towards pro-industrypolicies. In 2005, Singh's government introducedthe value added tax, replacing sales tax. In 2007and early 2008, the global problem of inflationimpacted India.

� Tenth Plan (2002-2007)

The main objectives of the Tenth Five-Year Planwere:

� Attain 8% GDP growth per year.

� Reduction of poverty rate by 5% by 2007.

� Providing gainful and high-qualityemployment at least to the addition to thelabour force.

� Reduction in gender gaps in literacy andwage rates by at least 50% by 2007.

� 20-point program was introduced.

� Target growth: 8.1%-growth achieved: 7.7%

� Expenditure of Rs. 43,825 crores for tenthfive years

� Eleventh Plan(2007–2012)

i) Emphasis on social sector and delivery ofservice therein.

ii) Empowerment through education and skilldevelopment.

iii) Reduction of gender inequality.

iv) Environmental sustainability.

v) To increase the growth rate in agriculture,industry and services to 4%, 10% and 9%respectively.

� Healthcare and education

In 2005, Prime Minister Singh and hisgovernment's health ministry started the NationalRural Health Mission, which has mobilised half amillion community health workers. This rural healthinitiative was praised by the Americaneconomist, Jeffrey Sachs. In 2006, his Governmentimplemented the proposal to reserve 27% of seatsin All India Institute of Medical Studies (AIIMS),Indian Institutes of Technology (IITs), the IndianInstitutes of Management (IIMs) and other centralinstitutions of higher education for OtherBackward Classes which led to 2006 Indian anti-reservation protests.

Eight more IIT's were opened in the statesof Andhra Pradesh, Bihar, Gujarat, Orissa, Punjab,Madhya Pradesh, Rajasthan and HimachalPradesh. The Singh government also continuedthe Sarva Shiksha Abhiyan programme. Theprogramme includes the introduction andimprovement of mid-day meals and the opening ofschools all over India, especially in rural areas, tofight illiteracy.

SECURITY AND HOME AFFAIRS

Singh's government has been instrumental instrengthening anti-terror laws with amendmentsto Unlawful Activities (Prevention) Act (UAPA).National Investigation Agency (India) (NIA) wasalso created soon after the Nov 2008 Mumbai terrorattacks, as need for a central agency to combatterrorism was realised. Also, Unique IdentificationAuthority of India was established in February2009, an agency responsible for implementing theenvisioned Multipurpose National Identity Cardwith the objective of increasing national securityand facilitating e-Governance.

Singh's administration initiated a massivereconstruction effort in Kashmir to stabilise theregion but after some period of success, insurgentinfiltration and terrorism in Kashmir has increasedsince 2009. However, the Singh administration hasbeen successful in reducing terrorism in NortheastIndia.

LEGISLATIONS

The important National Rural EmploymentGuarantee Act (NREGA) and the Right toInformation Act were passed by the Parliament in


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2005 during his tenure. While the effectiveness ofthe NREGA has been successful at various degrees,in various regions, the RTI act has proved crucialin India's fight against corruption.

FOREIGN POLICY

Manmohan Singh has continued the pragmaticforeign policy that was started by P.V. NarasimhaRao and continued by Bharatiya Janata Party's AtalBihari Vajpayee. Singh has continued the peaceprocess with Pakistan initiated by his predecessor,Atal Bihari Vajpayee. Exchange of high-level visitsby top leaders from both countries have highlightedhis tenure. Efforts have been made during Singh'stenure to end the border dispute with People'sRepublic of China. In November 2006, ChinesePresident Hu Jintao visited India which wasfollowed by Singh's visit to Beijing in January 2008.A major development in Sino-Indian relations wasthe reopening of the Nathula Pass in 2006 afterbeing closed for more than four decades. As of2010, the People's Republic of China is the secondbiggest trade partner of India.

Relations with Afghanistan have also improvedconsiderably, with India now becoming the largestregional donor to Afghanistan. During AfghanPresident Hamid Karzai's visit to New Delhi inAugust 2008, Manmohan Singh increased the aidpackage to Afghanistan for the development ofmore schools, health clinics, infrastructure, anddefence. Under the leadership of Singh, India hasemerged as one of the single largest aid donors toAfghanistan.

Singh's government has worked towardsstronger ties with the United States. He visited theUnited States in July 2005 initiating negotiationsover the Indo-US civilian nuclear agreement. Thiswas followed by George W. Bush's successful visitto India in March 2006, during which thedeclaration over the nuclear agreement was made,giving India access to American nuclear fuel andtechnology while India will have toallow IAEA inspection of its civil nuclear reactors.After more than two years for more negotiations,followed by approval from the IAEA, NuclearSuppliers Group and the U.S. Congress, India andthe U.S. signed the agreement on 10 October, 2008with Pranab Mukherjee representing India.

Singh had the first official state visit to the WhiteHouse during the administration of U.S. PresidentBarack Obama. The visit took place in November

2009, and several discussions took place, includingon trade and nuclear power.

Relations have improved with Japanand European Union countries, like the UnitedKingdom, France, and Germany. Relations withIran have continued and negotiations over the Iran-Pakistan-India gas pipeline have taken place. NewDelhi hosted an India–Africa Summit in April 2006which was attended by the leaders of 15 Africanstates. Relations have improved with otherdeveloping countries, particularly Brazil and SouthAfrica. Singh carried forward the momentumwhich was established after the "BrasiliaDeclaration" in 2003 and the IBSA DialogueForum was formed.

Singh's government has also been especiallykeen on expanding ties with Israel. Since 2003, thetwo countries have made significant investmentsin each other and Israel now rivals Russia tobecome India's defence partner. Though there havebeen a few diplomatic glitches between India andRussia, especially over the delay and price hike ofseveral Russian weapons to be delivered toIndia, relations between the two remain strong withIndia and Russia signing various agreements toincrease defence, nuclear energy and spacecooperation.

15TH LOK SABHA

India held general elections to the 15th LokSabha in five phases between 16 April, 2009 and13 May, 2009. The results of the election wereannounced on 16 May, 2009. Once againthe United Progressive Alliance (UPA) form thenew government under the incumbent Singh, whobecame the first Prime Minister since JawaharlalNehru in 1962 to win re-election after completinga full five-year term. The Congress and its allieswere able to put together a comfortable majoritywith support from 322 members out of 543members of the House.

The 2009 Indian general election was the largestdemocratic election in the world held to date, withan eligible electorate of 714 million. Last two yearsof his tenure were marred by various scams likeCWG scam, Coal Gate scam, 2G scam, etc. andpolicy paralysis.

After 30 years the BJP was able to gain majorityof its own and became the largest party in 16thLok Sabha and ended a collation era. The NDA


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formed the government under the leadership ofNarendra Damodardas Modi.

Narendra Modi was sworn in as prime ministeron 26 May, 2014 at the Rastrapati Bhavan. He isIndia's first Prime Minister born after the country'sindependence. In a first of its kind, Modi invitedall SAARC leaders to attend his swearing-inceremony; the attendees included Prime Minister ofPakistan Nawaz Sharif, Sri Lankan PresidentMahinda Rajapaksa, Afghanistan President HamidKarzai, Bhutan Prime Minister Tshering Tobgay,Nepal Prime Minister Sushil Koirala, MaldivesPresident Abdulla Yameen Abdul Gayoomand speaker of Bangladesh Shirin SharminChaudhury and Prime Minister Navin Ramgoolamof Mauritius (SAARC observer).

MUMBAI TERRORIST ATTACK (2008)

The 2008 Mumbai attacks were twelvecoordinated shooting and bombing terrorist attackslasting four days across Mumbai, India's largestcity, by members of Lashkar-e-Taiba. Ajmal Kasab,the only attacker who was captured alive, laterconfessed upon interrogation that the attacks wereconducted with the support of Pakistan's ISI. Theattacks, which drew widespread global condem-nation, began on Wednesday, 26 November andlasted until Saturday, 29 November, 2008, killing164 people and wounding at least 308.

Eight of the attacks occurred in South Mumbai:at Chhatrapati Shivaji Terminus, the OberoiTrident, the Taj Mahal Palace & Tower, LeopoldCafe, Cama Hospital (a women and children'shospital), the Nariman House Jewish communitycentre, the Metro Cinema, and in a lane behindthe Times of India building and St. Xavier's College.There was also an explosion at Mazagaon, inMumbai's port area, and in a taxi at Vile Parle. Bythe early morning of 28 November, all sites exceptfor the Taj hotel had been secured by MumbaiPolice and security forces. On 29 November, India'sNational Security Guards (NSG) conductedOperation Black Tornado to flush out the remainingattackers; it resulted in the deaths of the lastremaining attackers at the Taj hotel and ending allfighting in the attacks.

Ajmal Kasab disclosed that the attackers weremembers of Lashkar-e-Taiba, considered a terroristorganization by India, Pakistan, the United States,the United Kingdom, and the United Nations,among others. The Government of India said that

the attackers came from Pakistan, and theircontrollers were in Pakistan. On 7 January,2009, Pakistan's Information Minister SherryRehman officially accepted Ajmal Kasab'snationality as Pakistani. On 12 February, 2009,Pakistan's Interior Minister Rehman Malik assertedthat parts of the attack had been planned inPakistan. A trial court on 6 May, 2010, sentencedAjmal Kasab to death on all the 86 charges forwhich he was convicted. On his appeal against thisverdict, Bombay High Court on 21 February,2011, and Supreme Court of India on 29 August,2012, upheld his death sentence. Kasab wasexecuted by hanging at Yerwada Jail in Pune on21 November, 2012.

Mumbai attacks once again proved Indian standright that Pakistan is directly involved inpropagating terrorism in India.

COMMONWEALTH GAMES (2010)

The 2010 Commonwealth Games, officiallyknown as the XIX Commonwealth Games, wereheld in Delhi, India, from 3 to 14 October, 2010. Atotal of 6,081 athletes from 71 Commonwealthnations and dependencies competed in 21sports and 272 events, making it the largestCommonwealth Games to date. It was also thelargest international multi-sport event to be stagedin Delhi and India, eclipsing the Asian Gamesin 1951 and 1982. The opening and closing cere-monies were held at the Jawaharlal Nehru Stadium,the main stadium of the event. It was the first timethat the Commonwealth Games were held in Indiaand the second time it was held in Asia after KualaLumpur, Malaysia in 1998.

ANTI-CORRUPTION MOVEMENT BY ANNA HAZARE

The 2011 Indian anti-corruption movement wasa series of demonstrations and protests acrossIndia intended to establish strong legislation andenforcement against perceived endemic politicalcorruption The movement gained momentum from5 April, 2011, when anti-corruption activist AnnaHazare began a hunger strike at the JantarMantar in New Delhi. The chief legislative aim ofthe movement was to alleviate corruption inthe Indian government through introduction of theJan Lokpal Bill. Another aim, spearheadedby Ramdev, was the repatriation of blackmoneyfrom Swiss and other foreign banks.


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Grievances of mass protesters focussed on legaland political issues, including political corruption,kleptocracy, and other forms of corruption. Themovement was primarily one of non-violent civilresistance, featuring demonstrations, marches, actsof civil disobedience, hunger strikes, marches andrallies, as well as the use of social media to organise,communicate, and raise awareness. The protestswere nonpartisan and most protesters were hostileto attempts made by political parties to use themto strengthen their own political agendas.

THE LOKPAL AND LOKAYUKTASACT, 2013

The historic Lokpal and Lokayuktas Act,2013 was passed by Indian Parliament paving theway for establishment of an Lokpal (Ombudsman)to fight corruption in public offices and ensureaccountability on the part of public officials,including the Prime Minister, but with somesafeguards.

Lokpal will consist of a chairperson and amaximum of eight members, of which 50% willbe judicial members 50% members of Lokpal shallbe from SC/ST/OBCs, minorities and women.Selection of chairperson and members of Lokpalthrough a selection committee consisting of PM,Speaker of Lok Sabha, leader of opposition in LokSabha, Chief Justice of India or a sitting SupremeCourt judge nominated by CJI. Eminent jurist to benominated by President of India on basis ofrecommendations of the first four members of theselection committee "through consensus". Lokpal'sjurisdiction will cover all categories of publicservants. All entities (NGOs) receiving donationsfrom foreign source in the context of the ForeignContribution Regulation Act (FCRA) in excess ofRs. 10 lakh per year are under the jurisdiction ofLokpal Centre will send Lokpal bill to states as amodel bill, states have to set up Lokayuktas througha state law within 365 days.

� Lokpal will have power of superintendenceand direction over any central investigationagency including CBI for cases referred tothem by the ombudsman.

� A high-powered committee chaired by thePM will recommend selection of CBIdirector. The collegium will comprise PM,leader of opposition in Lok Sabha and ChiefJustice of India PM has been brought under

purview of the Lokpal, so also centralministers and senior officials.

� Directorate of prosecution will be underoverall control of CBI director. At present,it comes under law ministry.

� Appointment of director of prosecution tobe based on recommendation of the CentralVigilance Commission.

� Director of prosecution will also have a fixedtenure of two years like CBI chief.

� Transfer of CBI officers investigating casesreferred by Lokpal with the approval ofwatchdog.

� Bill incorporates provisions for attachmentand confiscation of property acquired bycorrupt means, even while prosecution ispending.

� Bill lays down clear timelines forpreliminary enquiry and investigation andtrial. Provides for special courts Publicservants will not present their view beforepreliminary enquiry if the case requires'element of surprise' like raids and searches.

� Bill grants powers to Lokpal to sanctionprosecution against public servants.

� CBI may appoint a panel of advocates withapproval of Lokpal, CBI will not have todepend on govt advocates.

NIRBHYA CASE AND THE CRIMINALLAW (AMENDMENT) ACT, 2013

The 2012 Delhi gang rape case involveda rape and fatal assault that occurred on 16December 2012 in Delhi when a 23-year-oldfemale physiotherapy intern was beaten and gangraped in a private bus in which she was travellingwith a male friend. There were six others in thebus, including the driver, all of whom raped thewoman and beat her friend. The woman died fromher injuries thirteen days later while undergoingemergency treatment in Singapore. The incidentgenerated widespread national and internationalcoverage and was widely condemned, both in Indiaand abroad. Subsequently, public protests againstthe state and central governments for failing toprovide adequate security for women took place inNew Delhi, where thousands of protesters clashed


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with security forces. Similar protests took place inmajor cities throughout the country.

The Criminal Law (Amendment) Act, 2013,an Indian legislation was passed by the LokSabha on 19 March, 2013, and by the Rajya Sabhaon 21 March, 2013, which provides for amendmentof Indian Penal Code, Indian Evidence Act, andCode of Criminal Procedure, 1973 on laws relatedto sexual offences. The Bill received Presidentialassent on 2 April, 2013 and deemed to came intoforce from 3 February, 2013. It was originallyan Ordinance promulgated by the President ofIndia, Pranab Mukherjee, on 3 February, 2013, inlight of the protests in the 2012 Delhi gang rapecase.

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CREATION OF TELANGANA STATE

On 2 June, 2014, Telangana became the 29thstate of India, consisting of the ten north-westerndistricts of Andhra Pradesh. The city of Hyderabadwill serve as the joint capital of Telangana and thesuccessor state of Andhra Pradesh for upto ten years.

Telangana is bordered by the states ofMaharashtra to the north and north–west,Karnataka to the west, Chhattisgarh to the north-east, and Andhra Pradesh to the south and east.Telangana has an area of 114,840 square kilometres(44,340 sq. mi), and a population of 35,286,757 (2011census). Hyderabad, Secunderabad, Warangal,Karimnagar and Nizamabad are the major cities in


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OVERVIEW OF ECONOMIC &OVERVIEW OF ECONOMIC &OVERVIEW OF ECONOMIC &OVERVIEW OF ECONOMIC &OVERVIEW OF ECONOMIC &

FOREIGN POLICY SINCE 1991FOREIGN POLICY SINCE 1991FOREIGN POLICY SINCE 1991FOREIGN POLICY SINCE 1991FOREIGN POLICY SINCE 1991CHRONICLEIAS ACADEMYA CIVIL SERVICES CHRONICLE INITIATIVE

ECONOMIC & FOREIGN POLICYSINCE 1991

Until 1991, India’s policy makers followedmisguided policies that closed the economy tointernational trade, erected inefficient industriesunder state guidance, riddled the private sector withextraordinarily cumbersome and detailedregulations, and suffocated private economicactivity with controls and bureaucratic impedi-ments. Then in 1991, the big breakthroughhappened. Spurred by a balance of payments crisis,Indian policy makers turned to technocrats suchas Manmohan Singh, who promptly began theprocess of liberalizing the economy. Trade barrierswere slashed, foreign investment was welcomed,the License Raj was dismantled, and privatizationbegan. The economy started to boom, with softwareexports and call centers leading the way.

Foreign lending had virtually dried up, thegovernment was forced to sell 20 tonnes of gold tothe Union Bank of Switzerland in March 1991 totide over its immediate transactions. By July 1991foreign exchange reserves were down to a meretwo weeks' import cover despite loans from theIMF. The country was at the edge of default.

New Economic Policy of 1991 was a StructuralAdjustment Program that allowed India to qualifyfor aid from the World Bank and IMF. In 1990,India faced an economic crisis and was on the brinkof default on its debts. Within weeks of announcingthe reform package, the government devalued therupee by 23 per cent (The devaluation of the rupeehad been advocated by the World Bank sinceOctober 1990, when it recommended a 20 per centdevaluation), raised interest rates, and effectedsharp cuts in subsidies on food and fertilizers andtransfers to public enterprises. Over the next sixmonths, it abolished the complex system ofindustrial and import licensing, liberalized tradepolicy, and introduced measures to strengthencapital markets and institutions.

Among other measures, the new policiesannounced by Prime Minister P.V. Narasimha Rao

in July 1991 included allowing foreign firms to owna 51 per cent stake in joint ventures in India insteadof the previous 40 per cent. The government alsoeliminated requirements for some 7,500 licenses,eliminated financial support for in form of exportsubsidies, and allowed exporters to keep 30 percent of their net foreign exchange earnings (anincrease from 5-10 per cent).

On December 5, 1991, the World Bank madeits largest Structural Adjustment Loan to date: $500to India. The watershed reforms contained in thefirst budget the new Narasimha Rao governmentsubmitted in June excited the Bank, and fast tracknegotiations began. Initially, India was to receive$300 million, followed by the remaining $200million a year later if the structural adjustmentpolicies it agreed to remained in place.

Before 1991, India was a nation with politicalindependence but no economic freedom. If thelicense and permit tied India down, they also stifledindividual aspirations. In the early 1990s, India'spost independence development pattern of strongcentralized planning, regulation and control ofprivate enterprise, state ownership of many largeunits of production, trade protectionism, and strictlimits on foreign capital was increasingly questionednot only by policy makers but also by most of theintelligentsia. During this period, considerableprogress was made in loosening governmentregulations, especially in the area of foreign trade.Many restrictions on private companies were lifted,and new areas were opened to private capital.However, India remains one of the world's mosttightly regulated major economies. Many powerfulvested interests, including private firms that havebenefited from protectionism, labor unions, andmuch of the bureaucracy, opposed liberalization.Besides, many analysts agree that the poor sufferedmost from the increased inflation rate and reducedgrowth rate.

India’s economic performance during the firstthree decades since independence was christenedthe “Hindu” rate of growth, a term connoting adisappointing but not disastrous outcome. Thatcliché, of course, is gradually lapsing into disuse,


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thanks to the remarkable transformation in Indiaduring the last two decades. Since 1980, itseconomic growth rate has more than doubled, risingfrom 1.7 per cent (in per-capita terms) in 1950-1980 to 3.8 per cent in 1980-2000. Shackled by thesocialist policies and the “license-permit-quota raj”(to use Rajaji’s memorable phrase) of the past, Indiaused to serve as the exemplar of developmentstrategies gone wrong. It has now become the latestposter child for how economic growth can beunleashed with a turn towards free markets andopen trade. India has yet to catch up to China’sgrowth rates, but thanks to its solid democraticinstitutions and impressive performance ininformation technology, the country is increasinglyvying with, if not displacing, China as the countryof the future in the eyes of many knowledgeableobservers.

By the early 1990s, economic changes led tothe growth in the number of Indians withsignificant economic resources. About 10 millionIndians are considered upper class, and roughly300 million are part of the rapidly increasing middleclass. Typical middle-class occupations includeowning a small business or being a corporateexecutive, lawyer, physician, white-collar worker,or land-owning farmer. In the 1980s, the growthof the middle-class was reflected in the increasedconsumption of consumer durables, such astelevisions, refrigerators, motorcycles, andautomobiles. In the early 1990s, domestic andforeign businesses hoped to take advantage ofIndia's economic liberalization to increase the rangeof consumer products offered to this market.

As India moved into the mid-1990s, theeconomic outlook was mixed. Most analystsbelieved that economic liberalization wouldcontinue, although there was disagreement aboutthe speed and scale of the measures that would beimplemented. It seemed likely that India wouldcome close to or equal the relatively impressive rateof economic growth attained in the 1980s, but thatthe poorest sections of the population might notbenefit.

By the mid-1990s, the number of sectorsreserved for public ownership was slashed, andprivate-sector investment was encouraged in areassuch as energy, steel, oil refining and exploration,road building, air transportation, and telecommuni-cations. An area still closed to the private sector inthe mid-1990s was defense industry. Foreign-exchange regulations were liberalized, foreign

investment was encouraged, and import regulationswere simplified. The average import-weighted tariffwas reduced.

Despite these changes, the economy remainedhighly regulated by international standards.Moreover, although import duties had been loweredsubstantially, they were still high compared to mostother countries. Political successes in the mid-1990sby nationalist-oriented political parties led to somebacklash against foreign investment in some partsof India. In early 1995, official charges of servingadulterated products were made against a KFCoutlet in Bangalore, and Pepsi-Cola products weresmashed and advertisements defaced in New Delhi.The most serious backlash occurred in Maharashtrain August 1995 when the Bharatiya Janata Partyled state government halted construction of aUS $2.8 million 2,015-megawatt gas-fired electric-power plant being built near Bombay (Mumbai inthe Marathi language) by another United Statescompany, Enron Corporation. However theseincidents remained more of an aberration.

It is important to characterize appropriately thisattitudinal change that took place in the early 1980s.A distinction need to be made between a pro-marketand a pro-business orientation. The former focuseson removing impediments to markets, and aims toachieve this through economic liberalization. Itfavors entrants and consumers. A pro-businessorientation, on the other hand, is one that focuseson raising the profitability of the establishedindustrial and commercial establishments. It tendsto favor incumbents and producers. Easingrestrictions on capacity expansion for incumbents,removing price controls, and reducing corporatetaxes (all of which took place during the 1980s)are examples of pro-business policies, while tradeliberalization (which did not take place in anysignificant form until the 1990s) is the archetypalmarket-oriented policy.

Two decades of liberalization in India had afavorable impact on the overall growth rate of theeconomy. This is major improvement given thatIndia’s growth rate in the 1970’s was very low at3% and GDP growth in countries like Brazil,Indonesia, Korea, and Mexico was more than twicethat of India. Though India’s average annualgrowth rate almost doubled in the eighties to 5.9%,it was still lower than the growth rate in China,Korea and Indonesia. The pickup in GDP growthhas helped improve India’s global position.Consequently India’s position in the global economy


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has improved from the 8th position in 1991 to 4thplace in 2001; when GDP is calculated on apurchasing power parity basis. The slowdownexperienced by the Indian economy in the late1990s, partially due to the East Asian and SoutheastAsian crisis and a global slowdown, continued atthe turn of the century. The first few years of thenew millennium were turbulent with oil price hikes,the 9/11 terrorist attack in the US and a furtherglobal slowdown. Despite this, the Ninth Planperiod, 1996-97 to 2000-01, experienced an averageGDP growth of 5.5 per cent per annum against thetarget of 6.5 per cent. This demonstrated the post-reform Indian economy's ability to ride throughcrisis years, maintaining growth rates well abovethe 'Hindu rate' of 3 to 3.5 per cent

However, despite the low GDP growth in thefirst year of the Tenth Plan and the poorperformance of agriculture in the Plan period, 2002-03 to 2006-07 growth rate was slightly below thePlan target of 8 per cent. It was a big achievement.A critical aspect in this connection is the savingsand investment generated by the economy.Consistently increasing rate of Gross DomesticSavings and Investment as a proportion of GDP inthe new millennium led to this type of growth rates.'Demographic dividend' in the form of high savingsrate was goings to continue as the already highproportion of the Indian population in the workingage group. To ensure fiscal responsibility in viewof higher growth rates, a step was taken with thepassing of the Fiscal Reforms and BudgetManagement Act (FRBMA) in August 2003. TheAct was aimed at ensuring fiscal prudence. Therules of the Act was aimed at ensuring that revenuedeficits be reduced by half per cent or more of theGDP every tear and be eliminated altogether by31 March, 2009. The fiscal deficit was to be reducedby 0.3 per cent or more of the GDP every year andby 31 March, 2009 it was to be no more than 3 percent of GDP.

The economy growth rates were unprecedented7.7% per year in the Tenth Plan period. Howevereven at the end of plan, many people in the countrystill lacked the basic requirements for a decent livingin terms of nutrition standards, access to educationand basic health, and also to other public servicessuch as water supply and sewerage. Disadvantagedgroups, especially the Scheduled Castes andScheduled Tribes and the minorities had benefitedless than they should have. Faster, inclusive andsustainable growth has to be the mantra ofgovernment in such conditions. Eleventh Five-Year

Plan (2007-2012) began in very favourablecircumstances. But midway in the plan period worsteconomic disaster (since 1930 recession) hit theworld and Indian economy also. The governmentscaled down the annual average growth rate of 9per cent envisaged in the 11th Plan to 8.1 per centin view of the global economic meltdown thatbegan in 2008. According to official estimates, Indiaachieved an economic growth rate of around 8 percent during the 11th Five Year Plan period (2007-12). Though, economic growth has slipped todecades' low of 5 per cent in 2012-13, the first yearof the 12th Five-Year Plan, due to poor performanceof farm, manufacturing and mining sectors,fundamentals of economy are strong and return ofIndian growth story is expected sooner. Despitethe global economic crisis that engulfed the wholeworld Indian economy only slowed down and didnot go into a declining phase. That shows theresilience and inner strength of Indian Economy.

A hard landing to the discussion is being madehere, because the current economic situation willneed some time to settle down and only after thepresent turmoil is over, one would be able to givean account of present developments in a nonpassionate historical way.

LPG

India's leaders believed that industrializationwas the key to economic development. This beliefwas all the more convincing in India because ofthe country's large size, substantial naturalresources, and desire to develop its own industries.The Industrial Policy Resolution of 1948 gavegovernment a monopoly in armaments, atomicenergy, and railroads, and exclusive rights todevelop minerals, the iron and steel industries,aircraft manufacturing, shipbuilding, andmanufacturing of telephone and telegraphequipment. Private companies operating in thosefields were guaranteed at least ten years more ofownership before the government could take themover. Some still operate as private companies. TheIndustrial Policy Resolution of 1956, greatlyextended the preserve of government. There wereseventeen industries exclusively in the public sector.The government took the lead in another twelveindustries, but private companies could also engagein production. This resolution covered industriesproducing capital and intermediate goods. As aresult, the private sector was relegated primarily toproduction of consumer goods.


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The public sector also expanded into moreservices. In 1956, the life insurance business wasnationalized, and in 1973 the general insurancebusiness was also acquired by the public sector.Most large commercial banks were nationalized in1969. Over the years, the central and stategovernments formed agencies, and companiesengaged in finance, trading, mineral exploitation,manufacturing, utilities, and transportation. Thepublic sector was extensive and influentialthroughout the economy, although the value of itsassets was small relative to the private sector.

Controls over prices, production, and the useof foreign exchange, which were imposed by theBritish during World War II, were reinstated soonafter independence. The Industries (Developmentand Regulation) Act of 1951 and the EssentialCommodities Act of 1955 (with subsequentadditions) provided the legal framework for thegovernment to extend price controls that eventuallyincluded steel, cement, drugs, nonferrous metals,chemicals, fertilizer, coal, automobiles, tires andtubes, cotton textiles, food grains, bread, butter,vegetable oils, and other commodities. By the late1950s, controls were pervasive, regulatinginvestment in industry, prices of many commodities,imports and exports, and the flow of foreignexchange.

Export growth was long ignored. Thegovernment's extensive controls and pervasivelicensing requirements created imbalances andstructural problems in many parts of the economy.Controls were usually imposed to correct specificproblems but often without adequate considerationof their effect on other parts of the economy. Forexample, the government set low prices for basicfoods, transportation, and other commodities andservices, a policy designed to protect the livingstandards of the poor. However, the policy provedcounterproductive when the government alsolimited the output of needed goods and services.Price ceilings were implemented during shortages,but the ceiling frequently contributed to blackmarkets in those commodities and to tax evasionby black-market participants. Import controls andtariff policy stimulated local manufacturers towardproduction of import-substitution goods, but underconditions devoid of sufficient competition orpressure to be efficient.

India's current economic reforms began in 1985when the government abolished some of itslicensing regulations and other competition-

inhibiting controls. Since 1991, more "neweconomic policies" or reforms have been introduced.Reforms include currency devaluations and makingcurrency partially convertible, reduced quantitativerestrictions on imports, reduced import duties oncapital goods, decreases in subsidies, liberalizedinterest rates, abolition of licenses for mostindustries, the sale of shares in selected publicenterprises, and tax reforms. Although manyobservers welcomed these changes and attributedthe faster growth rate of the economy in the late1980s to them, others feared that these changeswould create more problems than they solved. Thegrowing dependence of the economy on imports,greater vulnerability of its balance of payments,reliance on debt, and the consequent susceptibilityto outside pressures on economic policy directionscaused concern. The increase in consumerism andthe display of conspicuous wealth by the eliteexacerbated these fears.

But forces of liberalisation, privatisation andglobalisation were not only strengthened with time,but also the horizontal spread of area under theseforces increased at a faster rate. Promotion of FDI(Foreign Direct Investment) by means of raisingthe cap, constitution of Competition Commissionof India in place of MRTP act, liberal act on foreigncurrency violations, easy sanction for FDI and FII(Foreign Institutional Investors), etc. point towardsthe above mentioned fact.

FOREIGN POLICY SINCE 1991

Few events, barring the shock of the 1962 Sino-Indian border war, has had as much of an impacton India’s foreign and security policies as thecollapse of the Soviet Union and the concomitantend of the Cold War. The Soviet collapse and thetransformation of the global order forced India’spolicymakers to make drastic changes in India’sforeign policy at multiple levels. At a global level,non-alignment ceased to have much meaning. Asa former Indian foreign and subsequently PrimeMinister, Inder Kumar Gujral, quite succinctlystated, “It is a mantra that we have to keeprepeating, but who are you going to be non-alignedagainst?” With the end of non-alignment for allpractical purposes, India’s foreign policy wassuddenly bereft of a grand strategic vision.

At another level, the country was alsoconfronted with an unprecedented fiscal crisispartly as a consequence of the first Gulf War of1991. Three factors contributed to this crisis. First,


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anticipating a spike in oil prices because of SaddamHussein’s invasion and occupation of Kuwait, Indiahad purchased considerable amounts of petroleumon the spot market thereby draining its treasury ofmuch-needed foreign exchange. Second, thegovernment of India was forced to repatriate overa hundred thousand workers from the Persian Gulfat short notice. Third, it lost the very substantialremittances that the workers from the Gulf hadcontributed to the Indian exchequer. The confluenceof these three factors placed the country in direfinancial straits. Faced with his extraordinary crisisand also confronting the loss of the vast EastEuropean market as a consequence of the Sovietcollapse, India’s policymakers, most notably thethen Finance Minister Manmohan Singh, chose todramatically alter India’s domestic and internationaleconomic policies. These involved abandoningthe country’s historic commitment to import-substituting industrialization, unbundling, thoughfitfully at best, its vast public sector and dismantlinga labyrinthine set of regulations, licenses, permitsand quotas which had largely stifled economicgrowth.

Drastic changes were also undertaken in thepolitical arena. As argued earlier, India’s commit-ment to non-alignment had already eroded inpractice, if not in rhetoric, in the post-Nehru era.Now its policymakers sought to forge a new visionfor the country. However, the country lacked aleader of the stature and intellectual proclivitiesof Jawaharlal Nehru. Yet, the Prime Minister,Narasimha Rao, possessed a sufficient grasp ofinternational affairs to recognize the necessity ofcharting a new course for the country in bothdomestic and international arenas. Accordingly, hesought to chart a new course for the country’sforeign policy.

This effort to alter the country’s foreign policyorientation toward the emergent, sole superpower,the United States ran into an important hurdle forthree compelling reasons. First, at a global level,the United States had few significant interests inIndia barring non-proliferation. This issue, ofcourse, put the two sides on a collision course asIndia was a staunch opponent of the Nuclear Non-proliferation Treaty (NPT) and categorically refusedto accede to its expectations. The US, especially,under the Clinton administration, was committedto its indefinite and unconditional extension at theReview Conference in 1995. Not surprisingly, theirfundamental differences put the two countries atodds.

Second, at a regional level, even though the USDepartment of Commerce had anointed India asone of the world’s “big emerging markets”,American investment in and trade with India wasso negligible that the nonproliferation issueovershadowed other interests.

“Third and finally, at a bureaucratic level inboth countries the “shadow of the past” weighedheavily on all deliberations. Most Indian foreignpolicy bureaucrats looked were dubious aboutAmerican goals and interests in South Asia andthere was lingering distrust of India in both theState and Defense departments in the United States.These mutual misgivings hobbled the growth ofthe relationship even though some small progresshad been made in the last days of Indira Gandhiand her son and successor Rajiv Gandhi. As aconsequence of these three factors, improvementsin relations were, at best fitful, and frequentlyhostage to minor, episodic differences. For example,the Assistant Secretary of State Robin Raphael’scareless remark about Kashmir’s accession to Indiaat a press briefing in Washington, D.C. became amajor diplomatic contretemps.

However, Indian policymakers managed tomove with somewhat greater dexterity on otherfronts. To that end, they ended country’s reflexivesupport for the Arab position on Israel and thePalestinian question. Historically, since the creationof the state of Israel in 1948 India had adopted forreasons of both domestic politics and nationalideology, a mostly frosty approach toward theJewish state. At home Indian policymakers wereattentive to the sentiments of the Muslimpopulation. At an ideological level they had viewedthe creation of Israel as the continuation of acolonial policy. In 1992, in the wake of the OsloAccord between Israel and the Palestinians, Indiaupgraded its diplomatic relations with Israel to theambassadorial level.

Simultaneously, India also directed its gazetoward South-East Asia after a long span of neglect.During much of the Cold War Indian policymakershad shunned the states of South-East Asia, withthe critical exception of Vietnam. Now as part andparcel of the opening of its markets to foreigninvestment and seeking to develop a viable exportsector, the country embarked upon a “Look Eastpolicy”.

Closer to home, the Narasimha Rao regimeefforts continued to improve relations with China,


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a process that had been initiated during theRajiv Gandhi regime in the late 1980s. Even thoughthe two sides forged two important confidence-building measures (CBMs) in 1993 and 1996designed to reduce tensions along the Line of ActualControl, little or no progress was made in resolvingthe border dispute.

Finally, relations with Pakistan, India’s long-standing adversary remained contentious as ever.In considerable part the relationship with Pakistandeteriorated because of the outbreak of an ethnoreligious insurgency in the dispute state of Jammuand Kashmir in December 1989. The origins of thisinsurgency were mostly indigenous could be tracedto a process of growing political mobilizationagainst a backdrop of steady institutional decay.However, with the outbreak of the insurgencyPakistan’s policymakers quickly stepped into thefray and helped transform a largely internaluprising into an ideologically charged, sanguinary,extortion racket.

In an attempt to suppress the insurgency Indiaresorted to a time-honored counterinsurgencystrategy. This involved the substantial use of forceagainst the insurgents but with the promise of freeand fair elections once they proved willing toabandon their secessionist agenda. As with othercounter insurgency operations, this strategy has metwith some success. However, while it has reducedthe insurgency to manageable proportions, it hasnot been able to eliminate it altogether. ContinuedPakistani logistical support for the insurgents, theprovision of sanctuaries in Pakistan-controlledKashmir and a porous border has prevented Indiafrom successfully suppressing the insurgency.

CROSSING THE NUCLEAR RUBICONAND BEYOND

Pakistan’s needling of India in Kashmir wasand remains susceptible to management throughIndia’s conventional military capabilities. Nor doesPakistan’s conventional capabilities pose anespecially compelling threat to India’s security. Theconventional military capabilities, the persistenceof the border dispute and the PRC’s nuclearweapons posed an altogether different order ofthreat to India’s security. Indeed it was the long-term security threats that the PRC posed to Indiaproved to be the most compelling underlying factorthat drove India’s nuclear weapons program. Thespecific timing of the program, contrary to much

polemical writing had little to do with theascendance of the right-of-center Bharatiya JanataParty (BJP) to power. Instead it was closely tied tothe successful extension of the NPT in 1995 andthe seeming inexorable efforts of the Clintonadministration to conclude a comprehensivenuclear test ban treaty. Fearful that the test bantreaty was all but inevitable Indian policymakerschose to exercise the nuclear option beforeineluctable pressures were brought to bear on Indiato accede to the regime.

Despite the initial burst of hostility from theUnited States and the other great powers, theinternational community has come to grudginglyaccept India as a de facto nuclear weapons state.In large part this came about as a consequence ofextended bilateral negotiations between the U.S.Deputy Secretary of State, Strobe Talbott andJaswant Singh, the Indian Minister for ExternalAffairs. Also their alarmist claims and fears abouta possible nuclear exchange between India andPakistan have not materialized. Pakistan’s fecklessattempt to revive the Kashmir issue through itsincursion in the Kargil region did contribute to alimited war between the two states in 1999.However, despite the Pakistani provocation Indiaexercised remarkable restraint and a large-scale warwas effectively avoided. Similarly, in the aftermathof the terrorist attack on the Indian Parliament inDecember 2001 India resorted to a strategy ofcoercive diplomacy albeit with mixed results.However, it is important to note that neither ofthese two crisis culminated in a full-scale warbetween the two long-standing adversaries.

In the aftermath of the 2001-2002 crisis, Indiaand Pakistan embarked upon a peace process. Theresults from this process have been limited thoughit had resulted in some de-escalation of tensions onthe Kashmir front. However, in August 2008,tensions once again came to the fore with Indianallegations about a Pakistani violation of theceasefire agreement. Matters worsened considerablyafter India (and the United States) alleged thatPakistan’s Inter-Services Intelligence Directorate(ISI-D) was behind the attack on the IndianEmbassy in Kabul in July 2008.

While relations with Pakistan remain quitefraught, Indo-US relations now seem to be on avery secure footing. The Bush administration’swillingness to exempt India from the expectationsof the Nuclear Non-proliferation Treaty (whichIndia had never acceded to in the first place) and


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pursue a civilian nuclear agreement provided asound foundation for the relationship. Afterprotracted bilateral (and internal) negotiations theCongress-led regime of Prime Minister ManmohanSingh withstood a parliamentary vote of no-confidence in July 2008. There is little question thatthis agreement can make a meaningful contributiontoward alleviating India’s energy needs. However,once consummated, its larger significance will lie

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in ending India’s thirty-odd years of nuclearisolation from the global order. Since the UnitedStates had been one of the principal protagonistsin creating and bolstering these global arrange-ments, the shift in American policy, which madean exception for India, was nothing short ofrevolutionary. Consequently, the American con-cession on this critical issue must be construed asrecognition of India’s emerging potential as a greatpower in Asia and beyond.


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TIME LINETIME LINETIME LINETIME LINETIME LINE

SINCE 1947SINCE 1947SINCE 1947SINCE 1947SINCE 1947CHRONICLEIAS ACADEMYA CIVIL SERVICES CHRONICLE INITIATIVE

A summary of the key events in India accordingto since independence in 1947.

1947

� Aug. 15 – India’s First Independence Day

� Oct. 22 – Armed tribals supported byPakistan invade Kashmir to dislodgeMaharaja Hari Singh and secure Kashmirfor Pakistan.

� Oct. 26 – Hari Singh accedes Kashmir toIndia in return for military help to wardoff the tribal invasion.

1948

� Jan. 1 – India takes the Kashmir issue tothe UN.

� Jan. 30 – Mahatma Gandhi assassinated.

1949

� Nov. 26 – Constituent Assembly adopts thefinished constitution.

1950

� Jan. 26 – Constitution comes into power,Republic Day.

1952

� Apr. 17 – The First Lok Sabha constitutedby the first General Elections.

� Dec. 15 – Potti Sriramulu dies, 58 days intohis fast to get a Telugu speaking provinceof Andhra Pradesh. Eventually leads to allstates being reorganized on the basis oflanguage.

1953

� Aug. 8 – Sheikh Abdullah imprisoned bythe Nehru Government.

1955

� Hindu Marriage Act passed by theParliament.

1956

� Mar. 22 – Angami Zapu Phizo declares theformation of a “Naga Central Government”.Full scale war between Naga rebels and thearmy by the middle of 1956. War subsidesby December.

1957

� Apr. 5 – EMS Namboodripad becomes CMof Kerala after the victory of CPI in theassembly elections.

1962

� Oct. 20 – India China War over borderdispute begins (till November 21).

1964

� May 27 – Death of Jawaharlal Nehru.

1965

� Aug. 15 – Second Indo-Pak war hostilitiesbegin.

� Sep. 23 – Ceasefire ends second Indo-Pakwar.

1966

� Jan. 10 – Tashkent Agreement signedbetween Lal Bahadur Shastri and AyubKhan.

� Jan. 11 – Lal Bahadur Shastri dies amysterious death at Tashkent.

1971

� Dec. 16 – Surrender of Eastern commandof Pakistan Military in the 1971 war.

1975

� Jun. 12 – Allahabad High Court upholdsRaj Narain’s accusations of electoral fraudagainst Indira Gandhi (Rae Bareillyconstituency, 1971 General Elections) anddisqualifies her from contesting Lok Sabhaelections for six years.

� Jun. 25 – Indira Gandhi imposes emergency.


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1977

� Mar. 24 – Morarji Desai of the Janata Partybecomes the first non-Congress PM of India.

1980

� Jan. 14 – Indira Gandhi becomes PrimeMinister again.

1984

� Providing Jun. 3 – Operation Blue Star toflush out extremists from the HarimandirSahib.

� Oct. 31 – Indira Gandhi assassinated by herSikh bodyguards; Hindu-Sikh riots ensue.Her son Rajiv Gandhi becomes PrimeMinister.

� Dec. 2/3 – Bhopal Gas Tragedy.

1985

� Jun. 23 – Air India Kanishka plane bombing.

1990

� Aug. 7 – V.P. Singh plans to implement theMandal Commission report favoringreservations for SCs, STs and OBCs.

� Sep. 25 – L.K. Advani begins his rath yatrafrom the Somnath Temple in Gujarat toAyodhya.

1991

� May 21 – Rajiv Gandhi assassinated.

� June 21 – P.V. Narsimha Rao appointsManmohan Singh as his finance minister;start of economic reforms and liberalization.

1992

� Dec. 6 – Babri Masjid demolished, Hindu-Muslim riots ensue.

1999

� May 26 – Operation Vijay launched to fightPakistani incursion in Kargil.

� Dec. 24 – Indian Airlines flight IC-814hijacked to Qandahar by terrorists.

2000

� Dec. 22 – Terror attack on the Red Fort byLeT.

2001

� Dec. 13 – Attack on Indian Parliament byLeT and JeM terrorists.

2002

� Feb. 27 – Godhra train carnage, Hindu-Muslim riots ensue.

2005

� Jun. 15 – Right to Information Act passedby the Parliament.

2008

� Apr. 10 – Supreme Court upholds the 27%OBC quota, taking reservation in IITs andIIMs to a whopping 49.5%.

� Nov. 26 – Terror attacks in Mumbai atHotels Taj and Oberoi, CST train terminaland other places.

2009

� May – United Progressive Alliance formedGovernment for second term.

2010

� Oct – Commonwealth Games, officiallyknown as the XIX Commonwealth Games,were held in Delhi.

2011

� April 5 – The anti-corruption movement intended to establish strong legislation andenforcement against perceived endemic politicalcorruption under the leadership of anti-corruption activist Anna Hazare.

2012

� Dec. 16 – Horrific Nirbhya Case and alloverIndia protest for women safety.

2013

� Lokpal Bill passed in Parliament.

2014

� May 16 – BJP attains clear majority in 16thLok Sabha Eletions.

� May 26 – Narendra Modi was sworn in asPrime Minister of India.

� June 2 – Telangana became the 29th stateof India.

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POST INDEPENDENCE INDIA · for Punjabi and Sindhi refugees to settle in today’s Himachal Pradesh...

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