Political courage of P.V. Narasimha Rao, not economics alone that powered 1991 reforms, says Montek Singh Ahluwalia

India’s landmark economic reforms of 1991 survived not merely because of technocratic brilliance but because of the political resolve of P.V. Narasimha Rao, former Deputy Chairman of the Planning Commission Montek Singh Ahluwalia said on Wednesday, recalling how Rao shielded then Finance Minister Manmohan Singh at moments when the reform process was on the brink of collapse.

Delivering the P.V. Narasimha Rao Memorial Lecture in Hyderabad on December 31, Mr. Ahluwalia said Rao’s greatest contribution lay in providing unwavering political backing at a time when economic liberalisation faced fierce opposition within Parliament and from across the political spectrum. “Without the Prime Minister, the Finance Minister is zero. With the Prime Minister, he becomes a 10,” he recalled Rao once saying.

Mr. Ahluwalia said Rao deliberately kept himself away from the technical details of economic reform, allowing Dr. Manmohan Singh the freedom to implement changes while he handled the political fallout. When complaints poured in about the Finance Minister’s decisions, Rao would deflect them, telling critics not to complain about Dr. Singh but to question him directly if they believed something was wrong.

Beyond economic policy, Mr. Ahluwalia described Rao as a leader with an acute political sensibility, capable of anticipating how different constituencies would react to decisions. “This quality had been evident even earlier when Rao informally vetted politically sensitive documents during Rajiv Gandhi’s tenure, offering quiet counsel without seeking the spotlight,” he added.

While acknowledging that Dr. Manmohan Singh deserved immense credit for designing and executing the reforms, Mr. Ahluwalia said history had failed to adequately recognise Mr. Rao’s role. 

Mr. Ahluwalia also cited Rao’s instinctive grasp of how India needed to reposition itself globally. During a visit to Japan, Rao bypassed ceremonial engagements to hold closed-door discussions with top industrialists, including Sony chairman Akio Morita. Despite existing restrictions on foreign investment in consumer goods, Rao directly invited Sony to manufacture televisions in India, assuring policy support. “Every Indian wants to own a Sony TV,” Rao told Morita, a statement Mr. Ahluwalia said reflected his willingness to break from entrenched thinking.