Foreign Policy of VP Singh and Chandra Shekhar
After the 1989 elections, a coalition third front government had come to power in centre with external support of BJP and Left. This government was led by Prime Minister VP Singh.
The first major decision of VP Singh government was to withdraw the Indian Peace Keeping Force from Sri Lanka. Sending IPKF not only cost heavily on Indian exchequer and soldiers but also resulted in assassination of Rajiv Gandhi in 1991. The peace force was withdrawn with its mission remaining unaccomplished. Due to this mission, other neighbours also smelled India’s hegemonic attitude.
However, since VP Singh was busier with domestic policy, his foreign minister Indra Kumar Gujral steered the foreign policy of the government. Gujral had a belief that it was very important for India to maintain cordial relations with its South Asian Neighbours. The government sent a message to all South Asian Countries that India was not interested in playing the role of “big brother” in the neighbourhood but as “equal partner”.
During this government, the relations between India and Pakistan worsened due to increased activities of militants in valley. The Kashmiri Militants abducted Rubaiya Sayeed, daughter of then Home Minister Mufti Mohammad Sayeed and demanded release of some of their comrades locked in various jails of India, in exchange of her release. The government caved in to these demands. The tensions increased and both countries deployed higher number of troops across the LOC. Tensions came down after international pressure upon both the countries.
Meanwhile in August 1990, the Gulf War began when Iraq attacked Kuwait to capture it. To ensure evacuation of Indians from Iraq, VP Singh sent Gujral to Iraq. Gujral met with Saddam Hussain to discuss evacuation of Indians along with some other issues. But this Saddam-Gujral meeting irked United States. Indian government in no time had realized the new post-cold war political reality and mainly to please United States, not only allowed US Mediation over Kashmir issue {through Robert Gates} but also allowed refuelling facilities for American Fighter Planes on the way to Gulf. This caused major turmoil in India.
Meanwhile, VP Singh Government fell due to internal political crisis and Chandra Shekhar became new Prime Minister with support of Congress (I) led by Rajiv Gandhi. This government remained in power only for six months including two months as caretaker government. So, no major initiatives were taken on foreign front. He tried to continue allowing refuelling of American Jets but Rajiv Gandhi threatened him to withdraw support from the government over this decision. The government also supported the controversial resolution of the UN Security Council to impose very rigid economic sanctions on Iraq.
The Chandra Shekhar Government also witnessed India’s most dangerous BoP crisis in 1991. India was already having payment crisis but the Gulf War aggravated the condition. India’s credit rating was downgraded and country had foreign reserves to pay only two weeks imports. The NRI deposits started flowing from the country. The only option left to fulfil international commitments was to borrow by putting India’s Gold Reserves as collateral. The Chandra Shekhar government secured an emergency loan of $2.2 billion from IMF by pledging 67 tons of India’s gold reserves as collateral. This triggered a wave of sentiments against leaders.
In March 1991, the government of Chandra Shekhar fell. This was the last cold war period Government in India.
