INDIAN ECONOMY

 

The economy that the Prime Minister has thrown into pit ; Rao-Manmohan Magic as Salvation

 

A Prime Minister who is not a Member of Parliament and a Finance Minister who is not a Member of Parliament have to rely on allies as they do not have a majority to rule alone. The country is in the midst of a major financial crisis. When PV Narasimha Rao's cabinet came to power in 1991, no one had high hopes. But that government has opened to the world not only the windows of the economy trapped in license resignations and the political uncertainty of the 1980s, but even the closed doors of regulatory-protectionist policies.

The Dunkel draft, the GATT agreement and the WTO have become familiar words to the common man. It has been three decades since the country implemented the new economic policies that made liberalization, privatization and globalization possible. It is a time when it is doubtful whether the world is going through globalization and many economies are playing safe. Globalization will be here, as if the ghost that still opened the jar is completely irreversible.

Socialist love

After independence, India's journey was through socialist development. Nehru and later Indira were advocates of such a social order. Government planning, public sector domination in all sectors, strict controls on imports, Licensing, the red tape of governance, tax evasion, corruption and fiscal deficits, which discourage entrepreneurship, have also hampered the country's development.

 

Growth rate and foreign exchange reserves have declined sharply. The eighties were pushing the Indian economy into forced suicide. Large companies were reluctant to make large-scale capital investments. The atmosphere here was not at all business friendly. But even before that, the government had not sought core economic reform. They followed the developmental model of highly romanticized socialism. Chandrasekhar was the eighth Prime Minister to step down after ruthlessly pushing the Indian economy into the cocaine.

Rao-Manmohan Magic

The 1991 Gulf War saw a sharp decline in foreign exchange earnings. Food shortages worsened. Exports fell sharply. Inflation soared and soared. The gold reserves held by the Reserve Bank had to be mortgaged abroad. No knocking doors were opened in front of India. At a time when there was nothing hopeful, Prime Minister Narasimha Rao and Finance Minister Dr. Manmohan Singh also worked wonders.

 

At a time when the country was going through a major financial crisis, the government had no doors to enter. But the international financial institutions, aware of the weakness of the Indian economy, turned their backs on it at first. It was only after great efforts that the IMF and the World Bank agreed to provide assistance. One of the conditions they put forward was to keep the Indian economy open to the world. That is, it demanded a structural break with our economic policies.

The government, which was over the private sector, also demanded that the bandwagon be lifted and free international trade be allowed. Rao and Manmohan Singh were not the kind of rulers who backed down on the limits of these conditions because India has made great strides in the economy over the last three decades. Or we would have been studying for some extremely poor country by now. Budget about the revolution

In June 1991, Union Minister of State for Industries PJ Kurien introduced the Industrial Policy in the Lok Sabha. There were indications of a diversion of the Indian economy. The 91-92 budget presented by Manmohan Singh was a revolutionary economic reform that no other finance minister could have imagined before. That historic budget was presented on July 24.

 

 

It was not just a temporary measure to control inflation and fiscal deficit. It was a toolkit for structural demolition. The economic reforms were radical enough to undermine the license raj. In his memorandum to the IMF, former finance minister Manmohan Singh had said that foreign investment and technology would be welcomed, the economy would be reformed and production would be made more competitive. Second Declaration of Independence

With the implementation of new economic policies, India became part of the global economy. Products and services flowed back and forth without crossing borders. Import duties and tariffs were completely eliminated or nominally eliminated. The transfer and participatory research of technologies, including digital, was encouraged. There was a situation where capital flowed freely. With the exception of a few strategic areas, foreign investment was generally welcomed.

 

Reduced trade controls. The new industrial policy proposed core changes. The licensing conditions, which were frustrating for industrialists, became more liberal. With the opening up of some of the public sector to the private sector, there was healthy competition. The monopoly rule of monopoly law is over. In a way, the new economic policy was a great declaration of independence. It privatized some of the non-profit public sector entities that were entrenched in the public treasury. Some companies were made joint ventures. Foreign exchange law amended. There are faults and shortcomings

The argument that globalization was the solution to the crisis of capitalism certainly holds true. It was imperative for them to open new markets. It remains to be seen how a country like India, which has been mired in debt, stagnant growth, unemployment and poverty, has made good use of it. At the same time, it must be seen that globalization does not advance a social order free of guilt or shortcomings. There should be efforts to address it.

In a country like India, where there are no social security schemes like in the West, the poor and marginalized are certainly suffering the bitter consequences of globalization. Honest attempts to identify and address it have not yielded much from successive governments in the country. It was an attempt to create dust by announcing some concessions and concessions. If the benefits of economic growth are to reach all people, they must be involved in the process.

 

Economic equality can never be achieved with freebies. We have not made much progress in infrastructure development. Socialist fantasies are not the answer to the questions raised by globalization. This thirtieth anniversary of the new economic policies is also an opportunity to reminisce about the current state of the economies that have gone after such dreams. There is another thing to remember as well. Equality of opportunity must be put forward through globalization. It should not be overlooked that in India it is often reduced to nothing but friendly capitalism.

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