1. p.v. narashima rao had worked a lot for the last years.

2. Under his leadership india has seen a rising economic growth .

3. Current account deficits decresed.
4. Substantial inflow of foreign investment.

1. in 1991 , international monetary fund(IMF) loan of $1.8 billion had

exhausted
2. after IMF issued notice pm rao and finance minister , manmohan singh had
little choice but to reform the indian economy.
3. As a result, industrial liscensing was abolished for certain industries.
4. Tarrifs were slashed, and tax structure was simplified.

Challenges:-
1. one third of india’s people still lived under property , with annual growth of
2%.
2. Public borrowing soared.
3. Inflation again sarted rising , which affected the agriculture sector a lot.
4. Plaque spread which slowed down the economy due to poor sanitation in all
around the world

1. as a result , there were internal disintegration in congress party .

2. hence, party suffered serious defeats, even the party lost PM’s own home
state , AP..

RESULTS OF DEFEAT:-

SONIA GANDHI CAME TO POWER.