The Lahore summit

In late 1998 and early 1999, Vajpayee began a push for a full scale diplomatic peace process with Pakistan. With the historic inauguration of the Delhi Lahore bus service in February 1999, Vajpayee initiated a new peace process aimed towards permanently resolving the Kashmir dispute and other conflicts with Pakistan. The resultant Lahore Declaration espoused a commitment to dialogue, expanded trade relations and mutual friendship and envisaged a goal of denuclearised South Asia. This eased the tension created by the 1998 nuclear tests, not only within the two nations but also in South Asia and the rest of the world.

The Vajpayee led government was faced with two crises in mid 1999. The AIADMK had continually threatened to withdraw from the coalition and national leaders repeatedly flew down from Delhi to Chennai to pacify the AIADMK chief J. Jayalalitha. However, in May 1999, the AIADMK did pull the plug on the NDA, and the Vajpayee administration was reduced to a caretaker status pending fresh elections scheduled for October 1999.