Dec. 23 (Bloomberg) -- P.V. Narasimha Rao, India's prime minister between 1991 and 1996, died today in a New Delhi hospital, Defense Minister Pranab Mukherjee said in parliament. Rao was 83 years old.

As prime minister, Rao opened India's economy to overseas investors, paving the way for companies such as Coca-Cola Co. and Ford Motor Co. to set up Indian operations. Rao had also served as India's foreign minister, defense minister and home minister.

``Rao relentlessly chased liberalization and'' supported economic freedom and competition, which laid the foundations for India's current economic growth, said Mahendra K. Sanghi, president of the Associated Chambers of Commerce and Industry of India, a grouping of companies. India's economy grew at its fastest in 15 years in the fiscal year ended March 31.

The former prime minister had been ill for the past few weeks and had been admitted to a hospital, the Press Trust of India news agency reported, without saying where it got the information.

India's parliament was adjourned after the announcement of the former prime minister's death.

A court in 2000 had sentenced Rao to three years in jail for bribing members of parliament to support him in a no-confidence vote. It was the first time an Indian prime minister was convicted by a court on corruption charges. A Delhi High Court later exonerated him.

To contact the reporter on this story: Anand Krishnamoorthy in New Delhi at anandk@bloomberg.net.

Last Updated: December 23, 2004 06:09 EST