Prime Minister of India the dissolution of the Soviet Union, India was on the brink of bankruptcy, so, Rao took steps to liberalise the economy, and appointed Manmohan Singh—an economist and a former governor of the Reserve Bank of India—as finance minister. Rao and Singh then took various steps to liberalise the economy, these resulted in an unprecedented economic growth in India. His premiership, however, was also a witness to the demolition of the Babri Masjid, which resulted in the death of about 2,000 people. Rao, however, did complete five continuous years in office, becoming the first prime minister outside of the Nehru—Gandhi family
Prime Minister of India and 40 years old at the time—was sworn in on the evening of 31 October 1984, becoming the youngest person ever to hold the office of prime minister. Rajiv immediately called for a general election. In the subsequent general election, the Congress secured an absolute majority, winning 401 of 552 seats in the Lok Sabha, the maximum number received by any party in the history of India. Vishwanath Pratap Singh—first finance minister and then later defence minister in Gandhi's cabinet—uncovered irregularities, in what became to be known as the Bofors scandal, during his stint at the Ministry of Defence; Singh