PV Narasimha Rao was the 9th Prime Minister of India. PV Narasimha Rao is known for economic reforms in Indian political history. The end of the 'License Raj' began during his Prime Ministership. Liberalization, privatization and globalization in economics started with him and are continuing even today.
PV Narasimha Rao Biography
Full Name
Pamulapati Venkata Narasimha Rao
Occupation
Politician
Designation
India's 9th Prime Minister
Birth
28 June, 1921
Death
23 December, 2004
Smadhee Sthal
Kisaan Ghat
Narasimha Rao's life journey
He was born on June 28, 1921. He was born in a Telugu Niyogi Brahmin family in Laknepalli village of Narsampet mandal in Warangal district of present-day Telangana (then part of Hyderabad state).
He obtained his graduation degree from Osmania University and later obtained his degree in Law from Nagpur University.
Rao also took part in the Indian independence movement and after independence he joined full-time politics as a member of the Indian National Congress.
He served as an elected representative to the Andhra Pradesh State Assembly from 1957 to 1977. He held various ministerial positions in the Andhra government from 1962 to 1973. He became the Chief Minister of Andhra Pradesh in 1971. His tenure is known for strictly implementing the Land Reforms and Land Cessation Act.
In the Congress Party, he was considered close to Indira Gandhi and Rajiv Gandhi. In 1969, he supported Indira Gandhi in forming a new Congress Party by splitting the Indian National Congress.
He served as a Lok Sabha MP from Andhra Pradesh. He rose to national prominence handling many diverse portfolios, particularly home, defense and foreign affairs, in the cabinets of both Indira Gandhi and Rajiv Gandhi. He also served as the Minister of External Affairs from 1980 to 1984 and again from 1988 to 1989.
In the 1992 general elections, Congress did not get a clear majority but emerged as the largest party. Congress had won 232 seats. Then Narasimha Rao was given the leadership of the Congress Parliamentary Party. Although the government was in minority, the Congress Party gathered enough MPs to prove its majority and the Congress government successfully completed its five-year term.
Apart from economic reforms, India's nuclear program gained momentum during his tenure. Along with this, during his tenure, Babri Masjid demolition in 1992 and Mumbai attacks in 1993 also took place.
After retiring from national politics, he published a novel titled 'The Insider'. The book, which chronicles one man's rise in Indian politics, draws on events from Rao's own life.
On 9 December 2004, Rao suffered a heart attack and was taken to the All India Institute of Medical Sciences (AIIMS) where he died 14 days later at the age of 83.
Narasimha Rao's economic policies as Prime Minister (1991-1996) changed the direction of the country
In 1991, India was faced with a balance of payments crisis. External debt increased to meet the high fiscal and current account deficits. Due to this the country had to face the problem of rising inflation and inadequate exchange rate adjustment. For this reason some reforms became inevitable.
In 1992 the capital issue regulator, which set the prices and number of shares that could be issued by companies, was abolished.
Introduction of the SEBI Act and Securities Laws (Amendment) of 1992 which gave SEBI the legal authority to register and regulate all security market intermediaries.
In 1992, India's equity markets were opened to investment by foreign institutional investors and Indian companies were allowed to raise capital in international markets by issuing Global Depository Receipts (GDRs).
The National Stock Exchange began in 1994 as a computer-based trading system that served as a means to leverage reforms of other stock exchanges in India. By 1996, NSE emerged as India's largest exchange.
Tariffs were reduced from an average of 85 percent to 25 percent.
Foreign direct investment was encouraged by increasing the maximum limit of foreign capital stake in joint ventures from 40 to 51% with 100% foreign equity (FDI) allowed in priority sectors.
Streamlined the processes for FDI approval, and in at least 35 industries, automatically approved projects within limits on foreign participation.