Speaking at a function to mark the 10th death anniversary of Rao, he said the former prime minister should be conferred with the award for bringing in economic reforms which transformed India into an economic power.
"Rao's unique contribution was ushering in economic reforms and dismantling Soviet economic planning. He should be given Bharat Ratna," said Swamy, a former Commerce Minister.
In the Rao government, Swamy was Chairman of the Commission on Labour Standards and International Trade which was a Cabinet-rank post.
He died on December 23, 2004 at the age of 83.