1990s in India

The 1990s was a historic decade in India. Economic growth rates increased as policies were liberalised though not as quickly as in China. Urbanization was also very slow compared to that in China. Rate of growth of population and fertility rates decreased. Infant mortality rates saw good rate of decrease. Divisive politics based on caste and religious hatred raised its ugly head with the implementation of Mandal commission report, demolition of the Babri Masjid in 1992 and the subsequent communal riots. This was also the decade in which Pakistan-sponsored terrorism began to grow first in the state of Jammu and Kashmir and then in the rest of India. Civilian population of urban India became a soft target for the militants. The era of coalition politics began. Militants who were earlier fighting the Soviets in Afghanistan turned their focus to India. As the covert military support to terrorists was not getting much success, Pakistan army intruded into Kargil in 1999 and broke the 28-year peace between India and Pakistan (Kargil war).

Economy

As the government liberalised its economic policies, economic growth surged and the foundation was laid for India becoming one of the fastest growing economies of the world. The current Prime Minister of India, Manmohan Singh was instrumental in bringing about this change although India, with its socialist past, could not push economic reforms as aggressively as China which raced ahead during this decade from being just ahead of India to a GDP double that of India (a 4 times higher rate of growth) due to its more aggressive rate of economic reform. The License Raj came to an end. GDP per capita nearly doubled from US$ 1,380 in 1990 to US$ 2,420 in 2000. This rate of growth was 11th fastest in the world. Foreign direct investment, which contributed less than 0.1% to the GDP came close to contributing 1% to the GDP. Foreign exchange reserves which had plunged to zero surged to 50 billion US dollars. Short term external debt which had risen to 350% of foreign exchange reserves plunged to 25% of foreign exchange reserves. Foreign direct investment (mainly from USA, UK, Germany and Japan) started to become positive. The Indian rupee plunged from 25 to the dollar to 45 to the dollar. Contribution of services sector to GDP increased rapidly.

Leaders

*P.V. Narasimha Rao
*Atal Behari Vajpayee
*Lal Krishna Advani