. V.

Narasimha Rao
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P. V. Narasimha Rao

9th Prime Minister of India

In office 21 June 1991 16 ay 1996 Preceded by !handra "hekhar

Succeeded by #tal $ihari %a&payee Constituency 'andyal, #ndhra (radesh

4th Chief Minister of Andhra Pradesh

In office 19)1*+9*,+19),*+1*1+

Preceded by

-asu $rahmananda .eddy

Succeeded by Jalagam %engala .ao

Born

2/ June 1921 %angara, 0ydera1ad "tate, $ritish 2ndia 2, 3ecem1er 2++4 5aged /,6 'e7 3elhi, 3elhi, 2ndia 2ndian

Died Nationa ity

Po itica !arty 2ndian 'ational !ongress A ma mater 8smania 9niversity :a7yer #ctivist (oet 0induism

"ccu!ation

Re i#ion

Pamu a!arti Ven$ata ;Narasimha Rao; 5<elugu: = 2/ June 1921 2, 3ecem1er 2++46 7as the ninth (rime inister of 2ndia, serving from 1991 to 1996>?1@ 0e led one of the most important administrations in 2ndiaAs modern history, overseeing a ma&or economic transformation and several incidents affecting national security>?2@ .ao accelerated the dismantling of the :icence .a&> .ao, also called the ;Father of 2ndian Bconomic .eforms,;?,@ is 1est remem1ered for launching 2ndiaAs free market reforms that rescued the almost 1ankrupt nation from economic collapse>?4@ 0e 7as also commonly referred to as the Chanakya of modern 2ndia for his a1ility to steer tough economic and political legislation through the parliament at a time 7hen he headed a minority government>?C@?6@ .aoAs term as (rime inister 7as an eventful one in 2ndiaAs history> $esides marking a paradigm shift from the industrialiDing, miEed economic model of Ja7aharlal 'ehru to a market driven one, his years as (rime inister also sa7 the emergence of the $haratiya Janata (arty 5$J(6, a ma&or right*7ing party, as an alternative to the 2ndian 'ational !ongress 7hich had 1een governing 2ndia for most of its post*independence history> .aoAs term also sa7 the destruction of the $a1ri osFue in #yodhya 7hich triggered one of the 7orst 0indu* uslim riots in the country since its independence>?)@ .aoAs later life 7as marked 1y political isolation due to his association 7ith corruption charges> .ao 7as acFuitted on all charges prior to his death in 2++4 of a heart attack in 'e7 3elhi> 0e 7as cremated in 0ydera1ad>?/@

Economic reforms Main article: Economic liberalization in India See also: Licence Raj

.aoAs ma&or achievement is generally considered to 1e the li1eraliDation of the 2ndian economy> <he reforms 7ere adopted to avert impending international default in 1991>?4@ <he reforms progressed furthest in the areas of opening up to foreign investment, reforming capital markets, deregulating domestic 1usiness, and reforming the trade regime> .aoAs governmentAs goals 7ere reducing the fiscal deficit, (rivatiDation of the pu1lic sector, and increasing investment in infrastructure> <rade reforms and changes in the regulation of foreign direct investment 7ere introduced to open 2ndia to foreign trade 7hile sta1iliDing eEternal loans> .ao 7anted 2>G> (atel as his finance minister>?24@ (atel 7as an official 7ho helped prepare 14 1udgets, an eE*governor of .eserve $ank of 2ndia and had headed <he :ondon "chool of Bconomics and (olitical "cience?24@> $ut (atel declined> .ao then chose anmohan "ingh for the &o1> anmohan "ingh, an acclaimed economist, played a central role in implementing these reforms> a&or reforms in 2ndiaAs capital markets led to an influE of foreign portfolio investment> <he ma&or economic policies adopted 1y .ao include:

Abolishing in 1992 the Controller of Capital Issues which decided the prices and number of shares that firms could issue.[4][25] Introducing the !"I Act of 1992 and the ecurit# $aws %Amendment& which ga'e !"I the legal authorit# to register and regulate all securit# mar(et intermediaries.[4][2)] *pening up in 1992 of India+s e,uit# mar(ets to in'estment b# foreign institutional in'estors and permitting Indian firms to raise capital on international mar(ets b# issuing -lobal .epositor# /eceipts %-./s&.[20] tarting in 1994 of the 1ational toc( !2change as a computer3based trading s#stem which ser'ed as an instrument to le'erage reforms of India+s other stoc( e2changes. 4he 1 ! emerged as India+s largest e2change b# 199).[25] /educing tariffs from an a'erage of 55 percent to 25 percent6 and rolling bac( ,uantitati'e controls. %4he rupee was made con'ertible on trade account.&[29] !ncouraging foreign direct in'estment b# increasing the ma2imum limit on share of foreign capital in 7oint 'entures from 48 to 51 percent with 188 percent foreign e,uit# permitted in priorit# sectors.[98] treamlining procedures for :.I appro'als6 and in at least 95 industries6 automaticall# appro'ing pro7ects within the limits for foreign participation. [4][91]

<he impact of these reforms may 1e gauged from the fact that total foreign investment 5including foreign direct investment, portfolio investment, and investment raised on international capital markets6 in 2ndia gre7 from a minuscule 9" H1,2 million in 1991*92 to HC>, 1illion in 199C*96>

?,+@

.ao 1egan industrial policy reforms 7ith the manufacturing sector> 0e slashed industrial licensing, leaving only 1/ industries su1&ect to licensing> 2ndustrial regulation 7as rationaliDed
Economic crisis and initiation of liberalization

.ao decided that 2ndia, 7hich in 1991 7as on the 1rink of 1ankruptcy,?49@ 7ould 1enefit from li1eraliDing its economy> 0e appointed an economist, 3r> anmohan "ingh, a former governor of the .eserve $ank of 2ndia, as Finance inister to accomplish his goals>?2@ <his li1eraliDation 7as criticiDed 1y many socialist nationalists at that time>?C+@
Feb, 2011, 08.39PM IST,PTI

Govt considers raising FDI limit in defence sector

NEW DELHI: To attract forei ! "a!#fact#rer$ to i!%e$t i! I!&ia, a ro#' of "i!i$ter$ i$ co!$i&eri! a 'ro'o$a( to rai$e Forei ! Direct I!%e$t"e!t (i"it i! t)e &efe!ce $ector to *9 'er ce!t fro" t)e c#rre!t 2+ 'er ce!t. T)e Defe!ce Mi!i$tr, to&a, $ai& t)e 'ro'o$a( "oote& b, t)e -o""erce Mi!i$tr, .o#(& a($o )e(' t)e &o"e$tic i!&#$tr, to ro.. /T)e Mi!i$tr, )a$ 'ro'o$e& t)at t)e FDI (i"it $)o#(& be i!crea$e& to *9 'er ce!t. T)at 'ro'o$a( .a$ recei%e& b, o#r Mi!i$tr, a!& it i$ #!&er &i$c#$$io! b, a ro#' of "i!i$ter$,/ Secretar, Defe!ce Pro&#ctio! 0a12#"ar Si! ) $ai& )ere. /It i$ !ot a 'ro'er E3oM or a 3oM. It i$ a ro#' of o!(, t.o4t)ree "i!i$ter$,/ Si! ) $ai&. He, )o.e%er, &ec(i!e& to !a"e t)e "i!i$ter$. 0ece!t(,, t)e De'art"e!t of I!&#$tria( Po(ic, a!& Pro"otio! )a& $# 5* 'er ce!t $a,i! 100 'er ce!t o%er$ea$ e$te& FDI ca' i! &efe!ce $ector to be rai$e& to i!%e$t"e!t .o#(& be &e$irab(e.

I!&#$tr, c)a"ber$ )a%e a($o bee! &e"a!&i! i!crea$e i! forei ! i!%e$t"e!t (i"it i! t)e &efe!ce $ector to *9 'er ce!t for ro.t) of t)e &o"e$tic i!&#$tr, a$ forei ! co"'a!ie$ .ere a($o re(#cta!t to i!%e$t .it)o#t etti! a $i !ifica!t &e ree of co!tro( i! t)e !e. e!titie$. I!&ia i$ t)e 10t) (ar e$t &efe!ce $'e!&er i! t)e .or(& a!& &e'e!&$ o! o%er 50 'er ce!t i"'ort$ for it$ re6#ire"e!t.