The author says that the growth of the economy is not sufficient by itself to remove poverty, but poverty cannot
be removed without it.
Looking back, the author says that with independence in 1947 the country gained a political victory, but this soon turned to economic defeat as business enterprise was stifled and India’s share of world trade fell.
During the 1980s, there was an insatiable demand for foreign goods in India. Excessive regulation by the state had lead to a pent up demand for quality consumer products. Faced with a balance of payments crisis in 1991, India was on the verge of default. The structural changes that followed introduced competition in industry, and opened the doors to foreign trade and investment. And today, India is a different country…
However, prosperity has not spread to those living below the poverty line, and they have not gained much from the economic liberalization. This is the basic dilemma now facing the political leadership of this country. Over the decades, it has been unable to lift large sections of the populace out of poverty. Mahatma Gandhi’s vision of village self rule and rural development has been largely abandoned (except for symbolic touches here and there), but there is nothing to replace it as yet.
The author says that without economic progress, many of the rights enshrined under the constitution will remain on paper only. The author suggests what the government should do is concentrate on things it can do – such as building infrastructure (roads / water supply / power) and tackling endemic corruption in the bureaucracy.
The author says that while the private sector is showing signs of dynamism, inertia in the public sector is holding India back. Change, wherever it is taking place, is not systemic; but due to the efforts of certain individuals only. On the positive side, there appears to have been a change in mindset, with the people that matter (the opinion makers) having lost faith in state socialism.
In conclusion, the author states that India is getting wealthier by the day. The challenge before us is to see that the underclass – the downtrodden sections of society - do not get left behind.