Recent developments

Recent developments:

During Rajiv Gandhi's term, the government--and the prime minister himself--came under suspicion of corruption. In 1989, the Congress Party lost its majority in Parliament, and Gandhi resigned. The National Front, a coalition of parties, then formed the government. The coalition proved unable to hold together, and new elections were called. While campaigning in May 1991, Gandhi was assassinated.

The 1991 elections returned the Congress Party to power, and P. V. Narasimha Rao became prime minister. Rao began a far-reaching policy of reform to liberalize the Indian economy by reducing government control over it. He ended many government monopolies and introduced competition in key industries. Investment by foreign corporations in India increased dramatically.

In elections in 1996, the Congress Party suffered a major defeat. India then entered a period of coalition governments. In May 1998, India carried out several nuclear tests and declared itself capable of producing and using nuclear weapons. Pakistan, India's long-time rival, responded by exploding several nuclear devices of its own.

In 1999, Indian troops clashed with Muslim guerrillas who had established positions on the Indian side of the truce line in Kashmir. India claimed that the guerrillas included Pakistani troops, but Pakistan denied that its troops were involved.