UPSC Exam  >  UPSC Notes  >  History for UPSC CSE  >  Spectrum Summary: The Narasimha Rao Years (1991–1996)

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSE PDF Download

The Narasimha Rao Years ( 1991 - 1996)

Pamulaparti Venkata (P.V.) Narasimha Rao assumed leadership of the Congress party in 1991 following the assassination of Rajiv Gandhi. A seasoned politician and proficient linguist, Rao had previously held key ministerial roles under Indira Gandhi and Rajiv Gandhi. In June 1991, he formed a minority government and, despite not contesting elections, secured a victory in the Nandyal by-election in Andhra Pradesh after being sworn in as the prime minister. Rao's tenure from 1991 to 1996, known as the Narasimha Rao years, saw significant economic reforms and policy initiatives, marking a transformative period in Indian politics. 

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSEP V Narasimha Rao taking oath as Prime minister


Economic Reforms

  • Rao's tenure as prime minister marked a crucial period of economic reform in India. When he assumed office, he appointed the non-political economist Manmohan Singh as the finance minister, who played a key role in implementing reforms. The Indian economy was facing challenges, including a precarious balance of payments situation and high inflation.
  • Rao opted for a middle path in economic reforms, aiming for high economic growth rates with minimal suffering for the masses. The New Economic Policy of 1991 addressed fiscal and balance of payments issues to stabilize the economy. The fundamental principles included liberalization, privatization, and globalization.

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSEManmohan Singh with P V Narasimha Rao 




  • Key measures were taken to correct fiscal imbalances, such as devaluing the rupee to boost exports and reducing the fiscal deficit. Manmohan Singh initiated the gradual reduction of import duties, income tax, and corporate tax. The finance minister and the prime minister targeted restrictive trade and industrial policies. Quotas on imports, especially for machinery and equipment, were removed, and there was a rationalization of the tariff structure with a reduction in custom duties.
  • Narasimha Rao presented the Industrial Policy of 1991, a revolutionary move that shortened the list of industries subject to industrial licensing. Amendments to the MRTP Act removed restrictions on growth and allowed the merger of large business houses. The public sector's role was reduced, granting it more autonomy, and private investment was welcomed in the infrastructural sector. Restrictions on foreign ownership were liberalized, and foreign investment saw gradual easing. The service sector, including insurance, banking, telecom, and air travel, was liberalized, allowing private sector participation.
  • Several regulatory changes were introduced, including the abolition of the Controller of Capital Issues, the introduction of the SEBI Act of 1992, and the Security Laws (Amendment) to regulate security market intermediaries. The National Stock Exchange was initiated as a computer-based trading system.
  • Despite these reforms, bureaucratic controls persisted, causing delays in starting a business compared to other countries. Labor laws remained unreformed, and the process of exiting for failing enterprises remained challenging.Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSE
    SEBI Bhavan, Mumbai 




[Question: 957207]


Panchayati Raj and Nagarpalika Acts

  • Initiation by Rajiv Gandhi: Rajiv Gandhi initiated the move for constitutional recognition of Panchayati Raj and municipal government.

  • Narasimha Rao's Prime Ministership: The constitutional status for Panchayati Raj and municipal government was achieved during Narasimha Rao's prime ministership.

  • 73rd Constitutional Amendment: This amendment implemented a Directive Principle of State Policy, providing constitutional recognition to local village governments under the Panchayati Raj system.

  • Provisions for Local Village Government: The 73rd Amendment included several provisions to empower and structure local village governments.

  • 74th Constitutional Amendment: This amendment obligated states to adopt municipalities as per the system prescribed in the Constitution.

  • Constitutional Obligation for States: The 74th Amendment established a constitutional obligation for states to adhere to the municipal system outlined in the Constitution.

  • Reservations for SC/ST and Women: Both in Panchayats and municipal bodies, there are reservations for Scheduled Castes (SC), Scheduled Tribes (ST), and women to ensure inclusive representation.

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSE


Handling Security Issues and Space Tech

Punjab Situation Control

  • Under Narasimha Rao's leadership, the security situation in Punjab was effectively controlled.
  • State elections were conducted, contributing to the stabilization of the region.

Militancy Subsided

  • Post the 2002 elections, militancy in Punjab significantly diminished.

Terrorist and Disruptive Activities (Prevention) Act

  • The government passed the Terrorist and Disruptive Activities (Prevention) Act.
  • The legislation aimed at addressing security concerns, particularly targeting infiltrators from Pakistan.

Defence Sector Modernization

  • Emphasis was placed on modernizing the defence sector during Rao's tenure.
  • Increased military spending to strengthen the country's defense capabilities.

Induction of Prithvi-1 Missile

  • The Prithvi-1 missile was successfully inducted into the army, showcasing advancements in indigenous missile technology.

Prithvi Missile gliding down the Rajpath during the Republic Day ParadePrithvi Missile gliding down the Rajpath during the Republic Day Parade

Advancement of Nuclear Program 

Narasimha Rao played a pivotal role in advancing India's nuclear program. His leadership is widely credited with ensuring progress in India's nuclear capabilities. 

Space Technology Progress 

Significant progress was made in space technology under Rao's administration.


  • Successful tests of the Augmented Satellite Launch Vehicle and the Polar Satellite Launch Vehicle were conducted, demonstrating India's capabilities in space exploration and satellite deployment.

Question for Spectrum Summary: The Narasimha Rao Years (1991–1996)
Try yourself:
What was the significance of the 73rd Constitutional Amendment?
View Solution


Foreign Policy

Post-Soviet Era Adaptation

  • The Soviet Union disintegrated in 1991, leading India to adapt its foreign policy in the absence of Cold War dynamics and bloc politics.

Improved Relations with the US

  • India's relations with the United States improved during this period.

Diversification of International Relations

  • India built strong relations with Western countries, Japan, Israel, Brazil, and South Africa.
  • The foreign policy became closely linked with economic considerations.

Look East Policy

  • Narasimha Rao launched the Look East policy to strengthen ties with ASEAN (Association of South East Asian Nations).
  • The policy aimed at enhancing political, economic, and cultural relations with Southeast Asian and Pacific nations.
  • Governments succeeding Narasimha Rao continued and built upon the Look East policy.

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSE20th ASEAN Summit 

Overture to China and Iran

  • Narasimha Rao made diplomatic overtures to China and Iran during his tenure.
  • This proved beneficial when Pakistan raised a resolution on India's human rights violation in Kashmir at the UN human rights body.
  • China and Iran did not favor Pakistan's resolution on India's human rights violation in Kashmir, highlighting the success of Rao's diplomatic efforts, thus gaining their support.

Negative Aspects


There were two main criticisms against Narasimha Rao. One was that he allowed the Babri Masjid demolition and the other was corruption:

The Babri Masjid Demolition

Background on Ram Janmabhoomi-Babri Masjid Dispute

  • In the late 1980s, the Bharatiya Janata Party (BJP) utilized the issue of Ram Janmabhoomi (believed birthplace of Lord Ram) to gain political advantage.
  • The Vishwa Hindu Parishad (VHP), an affiliated organization, organized protests demanding a temple at the site of the Babri Masjid in Ayodhya.

VHP's Plan and Kar Sevaks' Convergence

  • The VHP announced that on December 6, 1992, they would begin construction on the temple.
  • Thousands of volunteers, known as kar sevaks, gathered in Ayodhya.
  • Initially, the plan was to hold prayers near the mosque, but some groups of kar sevaks defied instructions and moved towards the mosque.

Uncontrolled Situation and Demolition

  • Despite calls from RSS (Rashtriya Swayamsevak Sangh) and police to stay back, the situation became uncontrollable.
  • Kar sevaks, armed with tools, scaled the mosque walls and attacked it.
  • Prominent BJP leaders, including L.K. Advani, were present, and attempts to call back kar sevaks reportedly failed.

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSEkar sevaks atop the Babri masjid (December 6, 1992)

BJP's Response and Communal Riots

  • The BJP clarified that it was not a party to the vandalism, and the incident was deemed unfortunate.
  • BJP leaders were arrested, but communal riots erupted in Uttar Pradesh and other parts of the country, resulting in numerous deaths.
  • The Shiv Sena, particularly in Bombay, exacerbated the violence.

Bombay Bomb Blasts (1993)

  • Retaliatory bomb blasts occurred in Bombay in 1993, orchestrated by mafia dons based in Dubai.
  • The blasts were seen as retaliation for the attacks on Muslims during the Babri Masjid demolition.

Role of Kalyan Singh and Center's Inaction

  • Kalyan Singh, as the Chief Minister of Uttar Pradesh, was criticized for not taking action to prevent the destruction.
  • The central government's inaction was pointed out, and it was suggested that it did not want to be perceived as anti-Hindu.
  • President's rule was imposed on Uttar Pradesh only after the destruction had taken place.

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSEBJP leader and former UP CM Kalyan Singh 

International Image and Social Impact

  • The Babri Masjid demolition damaged India's international image.
  • While predictions of lawlessness and dictatorship did not materialize, the event left a lasting impact on the social fabric, fostering suspicion and hostility between Hindu and Muslim communities.

Liberhan Commission

  • The Liberhan Commission, appointed 10 days after the demolition, was tasked with investigating the sequence of events.
  • Justice Liberhan submitted the report in June 2009, indicting top BJP leaders, including Advani, Joshi, Vajpayee, and Kalyan Singh.
  • The Kalyan Singh-led BJP government in Uttar Pradesh was identified as the key executor of the conspiracy.

Report Findings and Criticisms

  • The Liberhan Commission held 68 individuals culpable.
  • While BJP leaders were criticized, the central government and Prime Minister Narasimha Rao were not severely condemned.
  • Rao's contention that it was not legally and constitutionally possible to impose president's rule in Uttar Pradesh before the event was accepted by the report.

Question for Spectrum Summary: The Narasimha Rao Years (1991–1996)
Try yourself:
What was the main aim of India's Look East policy?
View Solution


Corruption Scandals 

No-Confidence Motion in July 1993

  • Narasimha Rao government faced a no-confidence motion in July 1993.
  • The government was technically a minority government.

Vote Manipulation Allegations

  • Opposition brought a no-confidence motion, and the government lacked sufficient numbers.
  • Members of Jharkhand Mukti Morcha (JMM) and Janata Dal (Ajit Singh group) allegedly voted against the motion.
  • Allegations surfaced that JMM members were bribed by Narasimha Rao through a representative.
  • The alleged bribery allowed the government to win the vote and complete its full five-year term.

Post-1996 Investigations and Convictions

  • After Rao left office in 1996, investigations into the bribery case occurred.
  • A special court convicted Rao and his colleague, Buta Singh.
  • On appeal to a higher court, the conviction was overturned.
  • Doubt was cast on the credibility of Mahato, who claimed to have taken the bribe.
  • In 2002, Rao and Buta Singh were cleared of the charges related to bribery.

Involvement in Other Scandals

  • Rao's name was linked to the Harshad Mehta stock market scam.
  • Also implicated in the hawala and Lakhubhai cheating cases.
  • Rao was cleared of charges in both the Harshad Mehta stock market scam and the hawala and Lakhubhai cheating cases.

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSEHarshad Mehta 


Kashmir 

Militancy and Islamic Fundamentalism in Kashmir

  • In the 1980s and 1990s, Kashmir witnessed a rise in militancy and Islamic fundamentalism, fostered with active support from Pakistan.
  • Religious sentiments were heightened, and the goal of Kashmir's liberation from the Indian state was intertwined with Islamic principles.

Lashkar-e-Taiba and Kashmir's Status

  • Groups like Lashkar-e-Taiba gained prominence, advocating for Kashmir to join Pakistan.
  • These groups sought to suppress others like the Jammu Kashmir Liberation Front (JKLF), which aimed at independence rather than merging with Pakistan.

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSELashkar-e-Taiba leader and 26/11 mastermind Hafiz Saeed 

Conflict with JKLF and Vengeance Against India

  • JKLF, desiring independence for Kashmir, faced opposition from groups favoring accession to Pakistan.
  • Some groups harbored resentment against India for its role in the creation of Bangladesh.

Fundamentalist Measures and Lifestyle Changes

  • Islamic fundamentalism led to changes in the way of life in Kashmir, including the imposition of restrictions such as banning cinema, smoking, and drinking alcohol.
  • Women were compelled to wear the burqa as part of the fundamentalist agenda.

Plight of Kashmiri Pandits

  • Kashmiri Pandits, a Hindu minority in the region, bore the brunt of militant actions.
  • Forced to leave their homes and Kashmir, many Kashmiri Pandits became refugees, fleeing the region due to the deteriorating security situation and threats to their lives.

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSEBitta Karate, Kashmiri-separatist militant 

Question for Spectrum Summary: The Narasimha Rao Years (1991–1996)
Try yourself:
What were the three prominent themes of the 1996 general elections?
View Solution


General Elections of 1996 


Themes and Divisions in 1996 General Elections


  • The April-May 1996 general elections were characterized by three prominent themes—Ayodhya, the economy, and corruption.
  • Political lines were drawn along religious and caste divisions, and factions within the Congress accused then-Prime Minister Narasimha Rao of mishandling various situations.

Lack of Majority and BJP's Performance

  • No single party secured a majority on its own during the elections.
  • The Bharatiya Janata Party (BJP) emerged as the leading party, winning 161 seats. Additionally, its allies, including the Samata Party, Shiv Sena, and Haryana Vikas Party, won a total of 26 seats. The combined strength of the BJP and its allies reached 187 seats.Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSE
    Atal Bihari Vajpayee in 1996



Congress and National Front Positions

  • The Congress secured the second position in terms of seats during the elections.
  • The National Front, composed of Janata Dal, Telugu Desam, and Left Front, came third in terms of overall performance.

Limited Interest from Regional Parties

  • Several strong regional and state parties chose not to align with any of the three main contenders for power.
  • The political landscape featured a diverse set of regional parties with independent stances.

Resignation of Narasimha Rao

  • In the aftermath of the general elections and the resounding defeat of the Congress, Prime Minister Narasimha Rao resigned from his position.
  • He also stepped down from the post of the party chief later, marking a significant transition in leadership following the electoral outcome.

Question for Spectrum Summary: The Narasimha Rao Years (1991–1996)
Try yourself:
What were the three prominent themes of the 1996 general elections?
View Solution


Rise of the Dalit Voice 

Consolidation of Dalits and Emergence of Dalit Leadership

  • The term "Dalits," now more commonly used than official terms like "Scheduled Caste" or "Harijan," witnessed a consolidation as they sought representation through their own political party.
  • Historically, the Congress had been the party drawing Dalit votes, and after the death of Dr. B.R. Ambedkar, Dalits found a leader in Jagjivan Ram.

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSEJagvijan Ram

Challenges to Congress Dominance

  • The Congress, traditionally drawing Dalit votes, faced challenges from other parties representing Dalit interests.
  • The Bitta Karate, is a Kashmiri-separatist militant  and the more militant Dalit Panthers posed challenges to the Congress in terms of representing Dalits.

Kanshi Ram's Mobilization Efforts

  • In the 1970s, Kanshi Ram, after quitting his government job, mobilized Dalit government employees into the All India Backward and Minority Communities Employees Federation (BAMCEF).
  • This organization attracted a significant number of followers, laying the groundwork for Kanshi Ram's political initiatives.

Formation of Bahujan Samaj Party (BSP)

  • Inspired by the success of BAMCEF, Kanshi Ram founded the Bahujan Samaj Party (BSP) in the 1980s.
  • The name "Bahujan" indicated its aim to represent not only Dalits but also other backward castes, Muslims, and various marginalized communities over time.

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSEKanshi Ram


BSP's Political Narrative and Electoral Impact

  • The BSP presented a narrative that resonated with Dalits, emphasizing that the Congress merely used them as vote banks, while the BSP stood for social justice and transformative change.
  • Although the BSP did not win any seats in the 1984 elections, it made significant inroads in Uttar Pradesh state elections in 1993, winning more than 60 seats and emerging as a major player alongside the Samajwadi Party and the BJP.

Leadership Transition to Mayawati

  • Mayawati, a protegé of Kanshi Ram, succeeded him as the leader of the BSP.
  • She played a pivotal role in building alliances with other caste groups and political parties, expanding the BSP's influence.

Historic Achievements of Mayawati

  • Mayawati won a Lok Sabha seat in 1989 and made history in June 1995 by becoming the first-ever Dalit woman to serve as the Chief Minister of Uttar Pradesh.
  • She reclaimed the position in 2007 and retained it until 2012, solidifying her significance in Dalit politics and Uttar Pradesh's political landscape.
    Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSE
    Mayawati taking oath as Chief Minister


The document Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSE is a part of the UPSC Course History for UPSC CSE.
All you need of UPSC at this link: UPSC
112 videos|494 docs|173 tests

Top Courses for UPSC

FAQs on Spectrum Summary: The Narasimha Rao Years (1991–1996) - History for UPSC CSE

1. What were the key economic reforms implemented during the Narasimha Rao years?
Ans. During the Narasimha Rao years, several key economic reforms were implemented. These included liberalization of the Indian economy, removal of industrial licensing, reduction of trade barriers, and encouragement of foreign direct investment. The government also introduced policies to promote privatization, deregulation, and fiscal discipline.
2. How did the Panchayati Raj and Nagarpalika Acts contribute to governance during the Narasimha Rao years?
Ans. The Panchayati Raj and Nagarpalika Acts, introduced during the Narasimha Rao years, aimed to decentralize power and provide local self-governance. These acts empowered rural and urban local bodies, allowing them to make decisions and implement developmental projects at the grassroots level. This led to increased participation of citizens in decision-making and improved governance at the local level.
3. What were the major security issues handled during the Narasimha Rao years?
Ans. The Narasimha Rao government faced several security challenges during its tenure. It dealt with issues like insurgency in Jammu and Kashmir, separatist movements in Punjab and Assam, and the threat of terrorism. The government took various measures to address these challenges, including deploying security forces, initiating dialogue with stakeholders, and implementing development programs to address the root causes of unrest.
4. How did the Narasimha Rao government shape India's foreign policy?
Ans. The Narasimha Rao government played a significant role in shaping India's foreign policy. It initiated the "Look East" policy, which aimed to strengthen ties with Southeast Asian countries and enhance economic cooperation. The government also pursued economic liberalization and actively engaged with international organizations like the World Trade Organization. It worked towards improving relations with major powers, such as the United States and China, and played a crucial role in nuclear disarmament efforts.
5. What were the major corruption scandals that occurred during the Narasimha Rao years?
Ans. The Narasimha Rao years witnessed several corruption scandals that tarnished the government's image. The most prominent scandal was the "Harshad Mehta scam," involving stock market manipulation and financial irregularities. Other notable scandals included the "JMM bribery case" and the "Hawala scandal," both of which involved high-profile politicians accepting bribes. These scandals highlighted the need for greater transparency and accountability in the Indian political system.
112 videos|494 docs|173 tests
Download as PDF
Explore Courses for UPSC exam

Top Courses for UPSC

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Exam

,

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSE

,

Semester Notes

,

Previous Year Questions with Solutions

,

Extra Questions

,

MCQs

,

ppt

,

Free

,

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSE

,

Spectrum Summary: The Narasimha Rao Years (1991–1996) | History for UPSC CSE

,

pdf

,

shortcuts and tricks

,

Summary

,

study material

,

Sample Paper

,

video lectures

,

Viva Questions

,

past year papers

,

mock tests for examination

,

Important questions

,

Objective type Questions

,

practice quizzes

;