Publication

While the Soviet Union was collapsing in December 1991, India was faced with its greatest economic crisis since its independence in 1947. Following a turbulent election campaign in May 1991, which saw the assassination of former Prime Minister Rajiv Gandhi, a minority Government led by Prime Minister P.V. Narasimha Rao assumed office. The country faced an unprecedented economic crisis, being forced to mortgage its gold reserves as its foreign exchange reserves steadily dwindled. The collapse of the Soviet Union, which was its largest trading and economic partner, also had serious implications for India’s security, as over 80% of India’s defence equipment was of Soviet origin.