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1991: How P. V. Narasimha Rao Made History Hardcover – 28 September 2016
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- Print length224 pages
- LanguageEnglish
- PublisherAleph Book Company
- Publication date28 September 2016
- Dimensions21.59 x 13.97 x 1.4 cm
- ISBN-109384067687
- ISBN-13978-9384067687
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From the Publisher

A Conversation with Sanjaya Baru
Sanjaya Baru is a veteran journalist and the author of the bestselling book The Accidental Prime Minister, an insider account of Indian political life and a superb portrait of the Manmohan Singh era. In his latest saga chronicles the dramatic events of a unique period in the history of modern India that heralded an economic revolution and transformed the nation. We caught up with the author to chat about his latest book and know more the year that shaped India as we know it today. An excerpt from an interview with the author.
Q. In the book you focus on the year 1991, one that saw the emergence of new political leadership. Why is this year so critical in the contemporary history of this country?
Sanjaya Baru: 1991 is seen as a turning point for India, not just in the realm of economic policy but also in Indian politics and foreign policy. It was the year of Rajiv Gandhi's assassination and the end of the Cold War. The economic crisis of 1991 occurred within this political and geopolitical context.
Much has been written, especially by economists, about the reforms of 1991. We now also have an authoritative biography of PV. However, no one has written about the political economy of 1991, especially the events that led to the crisis that summer. This book fills that gap.
Q. In the book you refer to PV Narahimsa Rao’s as India’s first ‘accidental prime minster’, why?
Sanjaya Baru: No one expected PV to become PM till virtually a month before he did. His elevation as Congress President and even the Congress getting more than 200 seats in the Lok Sabha were a consequence of Rajiv's death. If Rajiv Gandhi had lived the Congress may not have won that election. So in many ways the events that led to PV's election as PM were a series of accidents.
Q. What about his politics and policies, how were they a departure when compared to those of Nehru-Gandhi dynasty?
Sanjaya Baru: My book does not offer an overall assessment of PV's tenure as PM. This book focuses narrowly on the dramatic events of 1991. True, those events shaped his legacy. The economic crisis and the end of Cold War forcedIndia to change its economic and foreign policy.
Q. In the book, you extensively talk about ‘Nehruvianism’, India’s economic model post-independence. You also speak of bad economic management being one of the chief reasons for 1991 crisis. What went wrong?
Sanjaya Baru: Nehru's economic policies had relevance for the 1950s & even the 1960s. India did not change its policies in the 1970s, while other Asian economies did. The 'bad economic management' I refer to is about the mistakes that Rajiv Gandhi and V.P. Singh made during 1985-90. Their policies caused the crisis.
Q. How did PV manage to dismantle the license permit Raj within a month of taking office? How did he garner political support for his policy changes?
Sanjaya Baru: PV's biggest achievement was to use the first hundred days in office to do whatever he wanted to, before the political opposition built up. He also secured the implicit support of the BJP for the entire first year in office. This helped.
Q. You mention that 1991 was a historic year in many ways, and that this was the year when good politics forced out bad politics. What do you mean by this?
Sanjaya Baru: This observation pertains in particular to the Congress Party. By 'good politics' Imean traditional Congress politics that we saw through the Nehruvian era. The 'dynastic' family and coterie rule began with Indira Gandhi and continued through Rajiv's tenure. It was revived after Sonia Gandhi took over the party. The PV years were like the Nehru years, when the party organization and regional leaders were active and powerful.
Q. While researching this book did you discover things, which reinforced certain perceptions you had about PV, what were they?
Sanjaya Baru: I was impressed by the high regard so many people I spoke to still have for PV. Few articulate it publicly.
Q. This book is a departure from a traditional biography in the sense that this is the story of the year 1991, with PV as the protagonist of the tale. What do you think is principle role of a biographer? Is it different from that of a historian? Do you think it is truly possible for both biographers and historians to stay truly objective, or does personal bias eventually creep into the work?
Sanjaya Baru: This book is not a biography. It tells the story of a year that was historic for India. PV and Chandrashekhar played an important role in shaping national policy that year. I do think a good biographer has to be a good historian, because people live within an historical context. I do not claim by book to be either a biography or the work of an historian. I have tried to narrate a story, like a professional journalist would, and that is what I was in 1991.
Q. What message do you want to relay to the world through this book, what was your purpose behind writing it?
Sanjaya Baru: This book has been written primarily for the generation born in and after 1991 to tell them how PV shaped the India they have grown up in.
Q. What’s next for you?
Sanjaya Baru: I have been bitten by the writing bug! I will continue to write.
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Product details
- Publisher : Aleph Book Company; First Edition (28 September 2016)
- Language : English
- Hardcover : 224 pages
- ISBN-10 : 9384067687
- ISBN-13 : 978-9384067687
- Item Weight : 350 g
- Dimensions : 21.59 x 13.97 x 1.4 cm
- Country of Origin : India
- Best Sellers Rank: #50,222 in Books (See Top 100 in Books)
- #105 in Political Ideologies
- #2,473 in Biographies & Autobiographies (Books)
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Reviewed in India on 13 September 2018
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It was a watershed year in the history of India, as well as of the world. Chaos prevailed both inside and outside India. At the beginning of the year, the country on her West, Iraq, was brought to its knees by America and its allies, on a six-month long war to free Kuwait. This brought a deep strain on the pockets by raising the price of oil. On her East, USSR, one of her own long-term allies, was teetering on a period of political uncertainty. And, this caused a lot of trouble to the exports, which mainly depended on USSR. The situation at home was not much heartwarming either. Two prime-ministers came and went in what can reasonably termed ‘quick succession’. There was no political certainty in the country.
What was even more alarming was the balance-of-payments crisis, with India having the foreign exchange reserves that could afford for only two-week’s worth of imports. Even if India had decided to curb all the other imports and spend the scarce reserves only on crucial commodities of food and oil, this situation would only have worsened. With the credit rating of the country suffering a serious blow, raising credit in the global markets was becoming next to impossible. There was the ignominy of having pledged gold with the banks of Europe and Japan to raise foreign-exchange. IMF was acting like a big brother advising India to mend her ways and show some financial prudence.
There were two options ahead of India – either to become a defaulter, lose credibility and creditworthiness for a long, long time to come OR to implement some tough but timely measures to steady the ship. In a populous country like India, implementing any idea or policy that is going to usher in changes, especially some bitter ones, was never going to be easy. But the cat HAD to be belled.
The unfortunate assassination of Rajiv Gandhi won for Congress a mandate that was barely enough to claim the right to rule the country for the next five years. Amidst all that uncertainty arose an unlikely hero – P.V.Narasimha Rao. This diminutive persona proved himself worthy by overcoming all those challenges. Apart from recruiting Dr.Manmohan Singh, who went on to become the Prime Minister himself, and giving him a free hand to implement the necessary changes in the country’s fiscal policy, Rao did also open up the Indian industry by doing away with all the cobwebs of ‘License Raj’. Also, at a time when the Congressmen were en masse falling at the feet of Nehru’s descendants, Rao gave hope by proving that in the ranks of Congress were capable leaders that could still hold their own when it came to leading the country.
But, there are quite some ironies in the tale of this memorable Prime Minister. Though a polyglot, who could converse in nearly two dozen languages, he was known more for his silence than for his eloquence. A man that was secular and sensible, it was under his regime that the shameful demolition of Babri Masjid took place, though he had played a vital role during the struggles against the Hyderabad Nizam in the 1940s. Though he had achieved many things in the five years with his minority government, the credit for many of his good initiatives went to his successors. Whether he deserves a Bharat Ratna or not is a topic worthy of debate and decision.
About the book, well, Sanjaya Baru has done an amazing work with his research and writing. Many of the books that I have read about History and Economy have all sounded so dry and dull. But this book feels more like a political thriller than like a work of non-fiction. The fluent style of Sanjaya Baru, reinforced by his impartial assessment of the prevailing scenario of that time, makes for interesting reading, though occasionally one gets the feeling that he tries to depict Narasimha Rao as a man without any faults. Baru makes up for it by not pulling any punches when it comes to criticizing the dynastic behavior of the current descendants of the Nehru clan.
This is a book that extensively recounts the economic and political changes in India during 1991. Changes that turned the tide in India’s favor and placed her on the path of economic progress. Changes that were brought about by an unsung hero that went from being respected to reviled in a life full of ironies.
- Victor Hugo
In the year 1947 India won it's Independence from the British, but 1991 was a ' landmark year ' in Indian history, because it was the year in which India won it's 'economic Independence' from the Indira Gandhi's so called 'licence-permit raj' also called 'licence-permit-quota raj'. And the man who was responsible for dismantling the notorious 'licence-permit raj', was the former Prime Minister of India, P. V. Narasimha Rao.
In this book the author has combined the politics, the economics and the geopolitics which made the year 1991 very important in the Indian context. Because in the year 1991 India had faced it's worst economic crisis because of the irresponsible fiscal policies of the successive governments and it was on the verge of defaulting it's external payments, and it was the year in which the Soviet Union was formally dissolved and the cold war was also ended with Uncle Sam emerged as the sole superpower, and also in 1991 Rajiv Gandhi was assassinated and Iraq under Saddam Hussein invaded Kuwait which started the first gulf war.
And the team of bureaucrats and enlightened politicians which Narasimha Rao had picked for dismantling the infamous 'licence-permit raj' also deserves credit for taking India to a new path, and because of their wise decisions today India is the 6th largest economy of the world and also the 3rd largest economy in PPP (Purchasing Power Parity) terms.
Though P. V. Narasimha Rao was forgotten by his own Party and the reason for this is that he was a common man, and not from the Nehru-feroze Gandhi clan, as the Indian National Congress (INC) or we can say Sonia Congress or Rahul Congress, has turned itself into a family political party, where the post of the party president and of the Prime Minister is already reserved for the family and this kind of attitude is possible only in India where the slave mentality still exist in the Indian psyche. And the one thing which we Indians can learn from the world's oldest democracy (USA) is that political parties should remain as political entities rather than converting themselves into a family proprietorship.
It doesn't matter if you like Reading fiction or nonfiction, but there are some books which deserves to be read and this book is one of them, and I also recommend to readers that before reading this book you should read, 'Half- lion : How P.V. Narasimha Rao transformed India by Vinay Sitapati.
My Ratings : ⭐⭐⭐⭐ (4/5)
I hope you like the Review, Thanks for reading, Jai Hind.
Table of contents :-
---------------------------
* January: The politics
* March : The crisis
* May : The elections
* June : The government
* July : The Reforms
* November : The Party
* December : The World
* The Middle way

Reviewed in India 🇮🇳 on 13 September 2018
- Victor Hugo
In the year 1947 India won it's Independence from the British, but 1991 was a ' landmark year ' in Indian history, because it was the year in which India won it's 'economic Independence' from the Indira Gandhi's so called 'licence-permit raj' also called 'licence-permit-quota raj'. And the man who was responsible for dismantling the notorious 'licence-permit raj', was the former Prime Minister of India, P. V. Narasimha Rao.
In this book the author has combined the politics, the economics and the geopolitics which made the year 1991 very important in the Indian context. Because in the year 1991 India had faced it's worst economic crisis because of the irresponsible fiscal policies of the successive governments and it was on the verge of defaulting it's external payments, and it was the year in which the Soviet Union was formally dissolved and the cold war was also ended with Uncle Sam emerged as the sole superpower, and also in 1991 Rajiv Gandhi was assassinated and Iraq under Saddam Hussein invaded Kuwait which started the first gulf war.
And the team of bureaucrats and enlightened politicians which Narasimha Rao had picked for dismantling the infamous 'licence-permit raj' also deserves credit for taking India to a new path, and because of their wise decisions today India is the 6th largest economy of the world and also the 3rd largest economy in PPP (Purchasing Power Parity) terms.
Though P. V. Narasimha Rao was forgotten by his own Party and the reason for this is that he was a common man, and not from the Nehru-feroze Gandhi clan, as the Indian National Congress (INC) or we can say Sonia Congress or Rahul Congress, has turned itself into a family political party, where the post of the party president and of the Prime Minister is already reserved for the family and this kind of attitude is possible only in India where the slave mentality still exist in the Indian psyche. And the one thing which we Indians can learn from the world's oldest democracy (USA) is that political parties should remain as political entities rather than converting themselves into a family proprietorship.
It doesn't matter if you like Reading fiction or nonfiction, but there are some books which deserves to be read and this book is one of them, and I also recommend to readers that before reading this book you should read, 'Half- lion : How P.V. Narasimha Rao transformed India by Vinay Sitapati.
My Ratings : ⭐⭐⭐⭐ (4/5)
I hope you like the Review, Thanks for reading, Jai Hind.
Table of contents :-
---------------------------
* January: The politics
* March : The crisis
* May : The elections
* June : The government
* July : The Reforms
* November : The Party
* December : The World
* The Middle way

Enjoyed reading it. Would like to read more of this kind.
Still an engaging read!
Even if parties do not acknowledge, these writings will wake up people of the nation to what PV is.
Top reviews from other countries


Sanjaya Baru, a political commentator and policy analyst, served as Secretary General of the Federation of Indian Chambers of Commerce and Industry (FICCI), prior to which, he was Director for Geo-Economics and Strategy at the International Institute of Strategic Studies. However, he is known for his proximity to former Prime Minister Manmohan Singh, in his capacity as the media advisor and chief spokesperson (PMO) from May 2004 until August 2008. A journalist and author of formidable mettle, Mr. Baru was also associated in various capacities with the Economic Times. Times of India, Business Standard. In “1991”, Mr. Baru deftly crafts the story of one man’s political astuteness, social acumen and economic alacrity that not only led India to stave off what might have been the most disastrous of all economic crisis, but also, in doing so, laid the path for a stupendous growth and development that is still continuing.
Following the ghastly assassination of Rajiv Gandhi and some deft political maneuvering by his supporters, a polyglot with a voracious reading appetite, Mr. Narasimha Rao (or PV as Mr. Baru chooses to address him throughout his book), was elected as India’s ninth Prime Minister. However, as alluded to in the preceding paragraphs, the adverse circumstances of the time ensured that his stint at the top would, by no stretch of imagination be a breeze. Due to years of mismanagement and myopic polices courtesy the Nehru-Gandhi dynasty, “the current account deficit (CAD), that is the sum of the deficit in foreign trade and in capital flows as a share of national income, went up from -1.7 per cent of GDP in 1980-85 to -2.9 per cent in 1985-90. The total external debt trebled from US$20.6 billion in 1980-81 to US$64.4 billion in 1989-90, with the share of external debt in national income going up from 17.7 per cent to 24.5 per cent during that period. In all this, the share of private debt kept rising as the government liberalized external commercial borrowing and allowed Indian companies to borrow abroad. The key factor contributing to the sharp rise in CAD during the 1980s was a steep increase in imports—especially defense imports—and in external commercial borrowings of the private sector. After hovering below 3 per cent for a long time, the share of defense spending in national income went up to 3.6 per cent in 1986-87 and 1987-88, with most of this increased spending financing increased defense imports.”
Twenty metric tonnes of confiscated gold, worth US$200 million, had to be made available by the Reserve Bank of India to the State Bank of India for sale, with a repurchase option, to the Union Bank of Switzerland. This was the first time India was selling gold to avoid default and to ensure that its external payment obligations were met. “Both the Bank of England and the Bank of Japan demanded the actual shipment of gold to their vaults. It would not just be a paper settlement. Gold bars of acceptable quality had to be airlifted and sent out. “
Rao’s cutting-edge political acumen came to the fore immediately after assuming office in the form of his appointments of credible personnel to various portfolios of importance. J. N. Dixit, one of India’s most gifted and extraordinarily talented diplomats was made foreign secretary in December 1991. A seasoned China-hand, Shyam Saran, assumed office as joint secretary, while a bright young diplomat, Ramu Damodaran, assumed office as PV’s personal secretary. “PV also counted on Ronen Sen, Rajiv Gandhi’s closest diplomatic aide and someone who was au fait with Rajiv’s key initiatives with the US, China, USSR and Pakistan.” However, when it came to the crucial and unenviable role of Finance Minister, the man who would subsequently go on to craft the watershed policy that liberalized India from the shackles of Nehruvian socialism, Dr. Manmohan Singh, was surprisingly not the first choice of PV. Post deliberations with his good friend and former Governor of Tamil Nadu, P.C.Alexander, PV homed in on Dr Indraprasad Gordhanbhai Patel. “IG” as he was known fondly to those well acquainted with him, Patel came with a stellar reputation attached to him. After a stint with the United Nations Development Programme (UNDP), Patel was made the Governor of the Reserve Bank of India (RBI) in 1977 by the then Prime Minister Morarji Desai. “Soft-spoken, dapper and with an interest in the arts and music, IG was a renaissance man. He related with equal ease to fellow economists, civil service colleagues and politicians of all hues. Despite his long years in government he retained an academic’s curiosity and easy way of dealing with younger people. As director of the Indian Institute of Management-Ahmedabad(IIM-A; 1982-84) and later as director of the London School of Economics and Political Science (1984-90), IG was very popular with his students.”
However, when IG refused to take up PV on his offer, the call went out to the soft-spoken Dr. Manmohan Singh to assume control of the Finance Ministry. PV also gave Mr. Singh a free hand to assemble his team. The result was a dazzling array of intellect and intuitive abilities. Montek Singh Ahluwalia was brought in as Secretary, economic affairs, and Ashok Desai as Chief economic consultant. The team included a roster of capable IAS Officers of the likes of K.P.Geethakrishnan, Y.V. Reddy, N.K.Singh, D. Subbarao, Valluri Narayan and V. Govindarajan. Y.V. Reddy and D. Subba Rao, of course would go on to be known as Central Bank Governors.
A soft-spoken external demeanour that made PV look like a reluctant mendicant, belied a will power that was cast in iron. The man neither had time for fools nor was inclined to tolerate political shenanigans and chicanery. His ability to deal a strong hand when the situation warranted – but without losing even a shred of composure in the process – was legion. “In July 1992, Commerce Minister Chidambaram, one of the ministers Rajiv first drafted into government, offered to quit following allegations of financial impropriety on his part in a matter pertaining to the ownership of shares in Fairgrowth Financial Services, a Bangalore-based company charged with involvement in a stock market scam. Chidambaram believed he had done nothing wrong and was being politically targeted. He publicly offered to resign at a press conference. He had hoped that the prime minister would reject his offer and ask him to continue. This would have vindicated him. Most Congress MPs regarded Chidambaram as uppity and arrogant. That is partly a reflection of his demeanour. Tall and good looking, whether in his starched white veshti and crisp shirt or in jeans and T-shirt, Chidambaram wears his brilliance on his sleeve. He assumed the prime minister would turn his offer down. PV was, however, very annoyed with Chidambaram. How could a minister go public with a resignation tendered in response to allegations of misconduct and then expect the prime minister to reject it, thereby giving him a clean chit? What did PV owe Chidambaram? Nothing. So, the prime minister promptly accepted the minister’s resignation. Chidambaram was stunned. More than a message to Chidambaram, it was a message to all his Cabinet colleagues—that they should not take the prime minister for granted.”
A similar fate befell Civil Aviation Minister, Madhav Rao Scindia, who made a capital show of resigning his post owning moral responsibility for a tawdry handling of events by the Delhi Airport, following a crash-landing of an Uzbekistan Airways flight in 1993. Not one to put up with either pettiness or petulance, the no-nonsense PV, put the Maharajah of Gwalior and a Gandhi backer to utter embarrassment by accepting the resignation.
Even where PV harboured doubts about the instituting and implementing a particular policy he deferred to the wisdom of the experts – in spite of his reservations – if he could be convinced of the plan’s efficacy or outcome. A classic case in point – the devaluation of the Indian Rupee. “On 1 July, the rupee was devalued by around 9 per cent and on 3 July there was a further devaluation by around 11 per cent, with the adjustment working out to a 17.38 per cent devaluation. The rupee slipped from Rs 17.9 to a US dollar to Rs 24.5. By the end of 1992 it was approximately Rs 31 to a dollar and remained. The entire exercise was dubbed ‘hop, skip and jump’ by Singh and Rangarajan. It was a game the two played in secrecy. But while Singh had secured the prime minister’s authorization, PV developed cold feet after the first step, on 1 July. Devaluation was a bad word in Indian politics. PV would have known of the 1966 devaluation episode and how Indira Gandhi had been criticized for it…. So, when PV’s critics attacked the government for the first step devaluation, the prime minister advised the finance minister to hold back the second step. But Singh, who was familiar with the 1966 episode (the economists who handled it were all his mentors or friends—K. N. Raj, I. G. Patel, D. R. Gadgil, Jagdish Bhagwati, P. N. Dhar and Manu Shroff), decided that if the second step was not taken as planned it might never be taken. ‘The first step was to test the waters,’ Manmohan Singh recently revealed. ‘So, although there was opposition to the move, it was manageable. So, I said that by July 3 [1991], we must complete the full thing. C. Rangarajan was the Deputy Governor [of RBI]… Prime Minister Narasimha Rao had doubts over the second instalment of the exchange rate adjustment and told me, in fact, to stop it. But when I called up Rangarajan, he said that he had already shot the goal.’ Once the two-step action was taken, government spokespersons moved fast to assure the markets that there would be no further devaluation. The rupee had found its warranted level. The markets stabilized.”
P.V.Narasimha Rao led the first non-Nehru-Gandhi Government that ran a full term since the beginning of the Indian Independence in 1947. He transformed Indian politics from a family run feudal proprietary denomination into an open, transparent and meritocratic level playing field. This he did by juxtaposing diplomacy with determination. “The Nehru-Gandhi family retainers and cronies, the nondescript men and women who acquired power and wealth doing the family’s bidding, were in fact doing a disservice to the Congress by repeatedly emphasizing the primacy of the family in the party. This was the way smaller, regional, sectarian and caste-based parties were run, with political power passing from one generation to the next.” However, such an exemplary achievement came at a heavy price. PV was abhorred by his own party following the completion of his tenure. While Dr. Manmohan Singh went on to finish two turbulent terms as a Prime Minister, PV’s legacy was relegated to the confines of a silent history. The ugliness of fractal allegiances and party politics shone it its most ugly form, when following his demise, “the party shut the gates of its headquarters and refused to bid official farewell to a former president. His crime: seeking to end the proprietary control of the INC by the Nehru-Gandhi family. PV died on 23 December 2004. In the decade since then the only Congress leader who has regularly and religiously paid tribute and honoured PV’s memory on the occasion of his birth anniversary has been Manmohan Singh— the man whose political career was made by PV. But even Manmohan Singh was unable to honour PV with a Bharat Ratna during his decade-long tenure as prime minister. The party had again become a proprietorship.”
The fact that the man who in a single swell swoop, liberated the second most populous nation from the draconian vice like grip of a license-permit-quota Raj, is yet to be bestowed upon with the Bharat Ratna, speaks a lot about the credibility, colour and cadence of Indian politics. Once when PV was asked, perhaps, in a jocular vein, about who between PV and Dr. Manmohan Singh ought to be credited for India’s swing in fortunes, replied in his inimitable poke faced fashion, “‘A finance minister is like the numeral zero. Its power depends on the number you place in front of it. The success of a finance minister depends on the support of the prime minister.”
The Zero in 1990 represented just that power. It required PV to alter the 9 preceding it and the rest, as the cliched saying goes, was history.

