New Capitalist India 2.0
After independence, the bankrupt and shackled GDP of India had the choice to follow Gandhian, Communist or Western Capitalist model of Economics, but we choose to follow Nehruvian Socialist model. The nation needed state support and hence socialistic principles were apt for our underdeveloped economy. Nehru took the much-needed risk to look beyond the primary sector to boost manufacturing, hence accepted Mahalanobis’formula to lay the foundation of ‘New India’. It was India 1.0 with core socialistic principles through which the state tried it best to give the ‘big push’ to our economy. It was on the Rosenstein-Rodan theory of providing an initial thrust to an airplane in order to keep it afloat. Nehru as founding father of Indian Economy lay the foundations of state-owned thermal power plants, steel plants, mega factories, IITs and IIMs.
This concept of ‘only government can do’ clutches on Indian citizens’ mind and seize them of thinking beyond state’s ownership. The governments after Nehru kept the same policies and took the socialistic system to another heights gaining control over banks, food storage, fertiliser production, transport and so on. The word ‘socialist’ was introduced in the preamble of the constitution (42nd amendment), thus making it more vocal and rigid. State governments also played merry hell with the systems, gaining control over trivial like selling chicken in Kerala, onions in Maharashtra, fish in West Bengal to name a few, therefore creating further havoc. This led to massive corruption into the system thereby rotting it to the core. Private players were deliberately demonised by equating them as profit hoarders.
The 1991 L-P-G reforms gave India a new vision to look beyond ‘Indian Socialist’ structure. The collapsing economy was given space to breath and perform. This paved the way for private industries, hospitals, schools, colleges, universities, banks etc. to set up and opened the tertiary sector of economy in India. This service industry soon bloomed and became the biggest contributor, but it failed to change the critic psyche of Indians. Five decades of socialist fodder corrupted the minds to the level that all wanted the excellent services of private hospitals, schools, banks etc. but never fail to criticise them also. Majority of institutions under Indian socialism were decaying beyond repair. The Mitrokhin Achieves Vol II quotes, “The entire country was for sale.”
Socrates said, “The secret of change is to focus all of your energy not on fighting the old, but on building the new.” Today, in 21st century, when India has got a stable government and a stern leadership, is aspiring to be a five trillion-dollar economy and aiming to be a part of elite countries club. It becomes necessary for the nation to shed the tattered feathers of socialism and wear new capitalism plumage to conquer the limitless sky. This is exactly what the present government is doing by changing the basic foundation principles of Indian economy. With the introduction of new laws and changing the existing ones, the state sponsored schemes are being replaced by market driven norms. With this master stroke, the govt. has made the word ‘socialist’ in the preamble seems redundant without even amending the constitution.
Noted psychologist Vikas Attry propounded that, ‘the problem is neither with the changes nor with the consequences but with the resistance of Indian minds.’ Majority of the Indians are not even well versed with the bills/laws but are raising their voices against them. Biggest criticising factor is privatisation and corporatisation of the existing systems. This dogma of being unable to come out of their socialistic mindset is making masses restless. Decades of feeding the ‘only government can do’ into the minds of citizens is stopping them to think beyond it and visualise the new dawn. They are unable to digest the change and think alternatively.
The adamant and stubborn nature of this govt is bringing the capitalist change despite all the ruckus and protest. Citizens should be able to connect the dots with all the new legislations and understand the paradigm shift in the state policy. The introduction of private railways; leasing airports to private players; Merger of Banks; New Education Policy 2020; Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2019; The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill 2020; The Essential Commodities (Amendment) Bill 2020; Labour Reform Bills on Industrial Relations, Occupational Safety and Social Security; replacing MCI with NMC are all stones to carve the superstructure capitalist India 2.0.
Modi govt is doing everything to fulfil its ambition of being a part of first world club and it seems they are running against time. In order to be in the elite club, the three-point agenda being followed is: firstly, to produce mega industries parallel to Wal Mart, Huawei, Aramco, Amazon, Apple, Microsoft etc. for which Ambani and Adani are undoubtedly the front runners. Secondly, the nation needs bigger banks like Citibank, HSBC etc. which the merger of Indian banks seems to achieve. Thirdly, we need bigger corporate players like Jeff Bezos, Bill Gates, Bernard Arnault, Warren Buffett etc. who have greater negotiation powers in the world.
Indians should understand that we as a nation, which is soon going to be of 1.5 billion people, cannot survive on old rotten socialistic infrastructure. The state cannot employ, sponsor and provide subsidies for such a humongous population. More and more entrepreneurs are to be created in order to provide framework for robust system of ground level employment. These changes are inevitable and are bound to come, the sooner they will be, more secure will be the future. Let’s all welcome the change and be a part of building New India 2.0. George Bernard Shaw once said, “Progress is impossible without change, and those who cannot change their minds cannot change anything.”
- Jagdeep S More, Educationist
