Half - Lion: How P.V. Narasimha Rao Transformed India

by Vinay Sitapati

In Rao’s archives lies a printed letter bound in light brown paper. While unsigned, on the top right corner, in Rao’s precise handwriting, is the word ‘Dhirubhai’.73 The letter begins by referring to the fiscal deficit and balance of payment crisis that India was facing. It does not suggest delicensing or external liberalization as the solution. Instead, it proposes that India raise 16,000 crore rupees by selling the government’s stake in public sector units. Such a suggestion would be soon implemented elsewhere. After the disintegration of the Soviet Union in 1991, the newly formed Russian republic would opt for the large-scale privatization of public sector enterprises. Many of these state assets were purchased at