Views | Atal Bihari Vajpayee’s Leadership of the Indian Economy

By understanding the division between personal and political matters, Atal Bihari Vajpayee has continuously shown himself to be a kind leader. He was a representative of the Indian government even while he was not in office. In 1994, as the head of the Opposition, Vajpayee sent a team to Geneva to veto a resolution that our neighbor had proposed, questioning India’s sovereignty over Kashmir.

The founder of the Bharatiya Janata Party (BJP), Atal Bihari Vajpayee, held 10 seats in the Lok Sabha throughout his political career. Additionally, he was chosen three times to serve in the Rajya Sabha. By being the first Prime Minister of India to serve a whole term in office without being a member of the Congress party, he accomplished a historic first. Still, he acted with unflinching moral integrity. He believed that people would accept one’s political beliefs if they were reasonable and well-founded.

It is said that Vajpayee coined the phrase “Jai Jawan, Jai Kisan, Jai Vigyan.” He advocated forging understanding and consensus among friends as well as making amends with the opposition. Leading a coalition of 24 political parties, he was the head of state. Following the Emergency, Vajpayee was nominated to the position of foreign minister in Morarji Desai’s administration. After Vajpayee was appointed foreign minister, he became the first head of state to address the UN General Assembly (UNGA) in Hindi.

India saw a profound and extensive transformation in its infrastructure and economy during his tenure. Vajpayee’s administration was distinguished by an unwavering commitment to modernization, economic growth, and stability, which laid the groundwork for a more resilient and wealthy India. In 1996, the NDA government under Vajpayee reacted to the economic crisis by bringing about important changes in the industrial and economic domains. With the implementation of these changes, the economic reforms that started in 2000–01 entered their second phase. Disinvestment, foreign joint ventures, capital market liberalization, Greenfield enterprises, and more tax devolution for states were among the policies put into place by the Vajpayee administration. Old laws were repealed and changes were included in the Indian Penal Code (IPC).

A VISIONARY POLITICIAN
When Vajpayee became prime minister for the first time in 1996, the BJP had been in opposition for forty years. With 161 seats won in the 1996 parliamentary elections, the BJP became the single biggest party. Vajpayee accepted an invitation from then-President Shankar Dayal Sharma to form the government. Atal Bihari Vajpayee served as prime minister for the first time during this term. With the support of allies like George Fernandes’ Samata Party, Shiv Sena, Akali Dal, and Haryana Vikas Party (HVP), the BJP-led coalition might reach 194.

There were still 78 MPs required to pass a majority. At this time, the BJP was considered “untouchable” by most political parties. He was forced to resign after 13 days. Vajpayee, knowing that he would not be able to prove his majority, might have submitted his resignation to the President immediately. He would have preferred to bring a motion of confidence in the Lok Sabha, nonetheless.

INDIA’S SECOND-TIME PM
He was a visionary politician who wanted to end the untouchability issue that the BJP was facing. Vajpayee intended to use this setback as a launching pad for his next big initiative. He purposefully used the trust vote to open the door for the BJP to participate in coalition politics down the road. Through his speech, he was able to achieve his goal. Because of his remarkable oratory abilities, the notion worked for him.

For the first time, the BJP managed to build a main coalition. During his political career, he went on to create coalitions with the Lok Janshakti Party, DMK, National Conference, Telugu Desam Party, Jammu and Kashmir People’s Democratic Party, Biju Janata Dal, and Trinamool Congress. Before the 1998 Lok Sabha elections, the National Democratic Alliance (NDA) was established.

Under BJP leadership, the NDA came to power. On May 11 and 13, 1998, Vajpayee shocked onlookers by carrying out five underground nuclear tests at Pokhran.

India’s Third-Time PM
Vajpayee became prime minister for the third time in 1999 when he formed a coalition government with 13 different political groups. On October 13, 1999, he took office as prime minister and was sworn in. This time, his government was able to complete its five-year tenure. Being a non-Congress prime minister, he was the first to hold the position for a whole term. Many important policies that were put into place during the Vajpayee government permanently changed the nature and direction of Indian politics.

Vajpayee gave the nation’s infrastructure development first priority. He put into effect the Golden Quadrilateral Scheme, a highway network that linked the cities of Chennai, Kolkata, Delhi, and Mumbai. By the Pradhan Mantri Gram Sadak Yojana, which aimed to boost the economies of both urban and rural communities, he also fortified rural areas. Furthermore, his administration guaranteed children the basic right to an education.

ESSENTIAL CHORES THAT TRANSFORMED THE ECONOMY
The commendable efforts that Vajpayee carried out to support the Indian economy serve as a precursor to the current trajectory of economic development. The GDP was estimated to be 8.4% at the time of his resignation, foreign currency reserves were in good shape, and inflation was still below 4%. It became clear in the years that followed that the UPA-I government was fortunate to have favorable economic circumstances.

Along with continuous current account surpluses, the foreign currency reserves increased significantly from $32.4 billion in 1998 to an astounding $113 billion in 2003–04. India’s GDP growth rate increased by 8.2 percent and its production growth rate increased by 7.2% in 2003–04. Between 1998 and 2004, there was a surplus in the current account, and the foreign currency reserves grew from $32.4 billion to $113 billion.

The economic measures of Vajpayee led to a significant decrease in the rate of inflation, which dropped from 13.23% in 1998 to 2.5% in 2002–2003. Notwithstanding the current India-Pakistan War, India’s inflation rate in 1999 was 3.1%, the lowest in 18 years.

The government prioritized the growth of small-scale industry and put laws in place that benefited rural craftsmen in particular under Vajpayee’s direction. From Rs 1,57,525 in 1998–1999 to Rs 3,36,344 in 2003–2004, the output increased significantly, indicating a notable gain of Rs 1,78,819 throughout the NDA’s mandate.

Between 1998 and 1999, the growth rate of industrial output was 4.1%; by 2003–04, it was 6.9%. The vehicle industry had a significant increase throughout that time, rising from 5.4% to 15.1%.

Vajpayee skillfully used economic reforms to lay the groundwork for essential infrastructure when he implemented the National Telecom Policy (NTP) and National Highway Development Policy (NHDP) in 1999. When the NHDP was first launched in 1998, its goal was to improve, renovate, and advance roads to the level of worldwide standards. 6,909 kilometers of national roads were either finished or in the process of being built as of March 2004. 3,200 kilometers of this had already been finished, while 3,709 kilometers were currently being built. After being started in 2001 despite some opposition, the Golden Quadrilateral Highway Project became India’s longest road project, effectively connecting important cities in a short amount of time.

Rural connection was included in Vajpayee’s emphasis on infrastructure, and this was handled in 2000 with the launch of the Prime Minister Grameen Sadak Yojana (PMGSY). 51,511 km of roads were completed in Left Wing Extremist Areas (LWE) as a consequence of road connection initiatives carried out under his administration. India’s road network expanded to 36.22 lakh km in 2003–04, demonstrating the Vajpayee government’s effective leadership.

With the goal of ensuring that everyone has access to effective and affordable telecommunications services, the National Telecom Policy was adopted in 1999, which led to a notable increase in the number of telephone subscribers. Over the course of six years, the number of telephone subscribers increased significantly from 14.88 million in 1997 to 54.61 million in 2003, a 267 percent increase.

Furthermore, it created a communications network with more than 25 million phone lines that connected 300 cities, 4869 towns, and 310897 villages, making the Indian telecom network the tenth biggest in the world. In the first ten months of the 2001 fiscal year, the number of subscribers increased to 3.27 million, indicating an additional rise of around 74%.

As a fundamental component of the government’s financial inclusion goal, connectivity is important and plays a major part in the JAM (Jandhan, Aadhaar, Mobile) plan. The rate of telephone penetration in India has increased from single digits to a significant amount. During Vajpayee’s term, the Fiscal Responsibility and Budget Management (FRBM) Act was a noteworthy policy effort that was passed into law in 2003. This law’s goal was to promote precision and restraint in government expenditure, which resulted in a -0.8% GDP decline in public sector savings in the 2000 fiscal year. By contrast, the percentage had increased to 2.3 in the 2005 fiscal year.

To boost industrial production and exports, the government created information technology centers, industrial parks, and specialized export processing zones under his direction. This project made a substantial contribution to laying the foundation for the successful implementation of the “Make in India” agenda. During the Vajpayee government, the establishment of credit bureaus and Asset Reconstruction Companies (ARCs) was the first attempt to assist banks in managing non-performing assets.

Even though it was a failure in 2004, Vajpayee’s “India Shining” campaign served as a model for the later NDA administration. Everyone can see that this effort has had a positive impact since it has led to significant advancements in a number of areas, such as infrastructure, FDI, education, and the economy. Vajpayee was widely admired not just for his wise leadership and diplomacy but also for his personal attributes. Even those who didn’t agree with him thought highly of him.

Vajpayee had a kind heart that accepted people of various castes, faiths, and geographical locations. The legacy of Vajpayee is a glaring example of the economy’s revival and the development of infrastructure. The fact that India was able to effectively overcome economic obstacles and make great progress towards becoming a more wealthy country during his tenure serves as evidence of the transformational effects of his visionary direction.