Indian economy Notes | EduRev

: Indian economy Notes | EduRev

 Page 1


-
L
-
-
.A
!
r
_F
F
s
r
r
3, 
Th,ff"*
r
-e'
F
er
s
f
:...sr
..et
s
f
-Jawaharlal 
Nehru in a speech to the Constituent Assembly
(L.gislative), New Delhi, 17 February 1948-
I am saddened, though not surprise$ tofind that seueral citk*ef the A/IP
(Nao Industrint Policy) haue tenounced thit ot onti-Nth*uion, *hith
only shows ho;,u litthe thE knap af the dyrcamirrninlqf Pandit Nehru.
' 
t' .r t 
.,t .,r t 
' 
., t.-.f'-- .'--.^^ .-^--ll l^--.^L^o--il)^ C*-t ^.-A6^
wno, jaceq with'the.lifboc in the iconomy, would hatte beenth.efirst arcong
.
tfn-fiot ta salute theNIP. 
Crtystal 
sfcc 
XeOfX
-0
--J.R.D. 
.Tata 
in 
'Berlin'Walls 
Should Fall,'
The Times of India, 1 August 1991.
5
e
C
t
I
tr
,s
--
I
|An<r
an4, 
fr'(o'nr-fr 
qi/l'
\./
-T'lJta't
wYfl, by+'ry
ry
1
I
t
I
I
I
I
I
I
I
I
I
t
I
I
I
.l
.t
" 
'i
,
The Myths Originatittgin
the Ascendancy and Decline
4+
Page 2


-
L
-
-
.A
!
r
_F
F
s
r
r
3, 
Th,ff"*
r
-e'
F
er
s
f
:...sr
..et
s
f
-Jawaharlal 
Nehru in a speech to the Constituent Assembly
(L.gislative), New Delhi, 17 February 1948-
I am saddened, though not surprise$ tofind that seueral citk*ef the A/IP
(Nao Industrint Policy) haue tenounced thit ot onti-Nth*uion, *hith
only shows ho;,u litthe thE knap af the dyrcamirrninlqf Pandit Nehru.
' 
t' .r t 
.,t .,r t 
' 
., t.-.f'-- .'--.^^ .-^--ll l^--.^L^o--il)^ C*-t ^.-A6^
wno, jaceq with'the.lifboc in the iconomy, would hatte beenth.efirst arcong
.
tfn-fiot ta salute theNIP. 
Crtystal 
sfcc 
XeOfX
-0
--J.R.D. 
.Tata 
in 
'Berlin'Walls 
Should Fall,'
The Times of India, 1 August 1991.
5
e
C
t
I
tr
,s
--
I
|An<r
an4, 
fr'(o'nr-fr 
qi/l'
\./
-T'lJta't
wYfl, by+'ry
ry
1
I
t
I
I
I
I
I
I
I
I
I
t
I
I
I
.l
.t
" 
'i
,
The Myths Originatittgin
the Ascendancy and Decline
4+
India's Tryst with Destilny
C 
ocialism, 
which was part of the rhetoric 
under Prime Minister
JJ"*aharlal 
Nehru (who 
could be described 
aceurately as having
been schooled in Fabian 
Socialism) 
did not fully dominate 
and
constrain 
the actual poliry framework 
that was adopted 
under his
i.rdership.t 
Indeed, 
one of us (Bhagwati), 
who had been 
educated
at cambridge 
and 
\tu-as influenced 
by 
Joan 
Robinson, 
his tutor,
r,vent so far as to condemn 
the policy 
framework as deficient 
on
t:
t.:
Irrr
!=
s
I
F
socialism 
upon his return 
to India 
in 1961 
ryt 
workifg 
on 
t:'
econornics 
of poverty at the Indian 
planning 
comrnission 
at the
time, he went on to charact 
ertzd the 
'soti.littit 
pat-t.14
which tfre Parliament 
ha{:dgp-!:3-g 
f'social 
'!
..-,. --.-,9----.- " 
-
ancl ..orro*ic 
policy i* 
P.-.-ggI#iIJ254' 
" 
*t" t*ialist 
ffi
-*t 
t;cialism 
ir** ; ffipy; 
far rnore prominent 
place in the
1- 
-V/e 
provide some historical 
details corroborating 
this proposition 
-in
Appendlx 
1- 
Crystal 
srcc 
Xeorx
See BhaS"tii and 
Desai (1975)- . 
' 
.
.Socialisrn, 
underJawaharlal 
Nehru is'set out in greaterdepth 
in 
$ppent'rx
1-while 
.socialisml 
under.Indira 
Gandhri 
is distussed immediately 
belowin
the-rext. The former was likb a medium 
ivlerlotwhlle 
the.latte.r 
*1t a ful.l.
Uoai.a Cabernet 
Sauvignon'
t.
tl
'.n 
^*
rf 
, 
Lv \-.
'tt!1,F
">
,L-
4
I
Page 3


-
L
-
-
.A
!
r
_F
F
s
r
r
3, 
Th,ff"*
r
-e'
F
er
s
f
:...sr
..et
s
f
-Jawaharlal 
Nehru in a speech to the Constituent Assembly
(L.gislative), New Delhi, 17 February 1948-
I am saddened, though not surprise$ tofind that seueral citk*ef the A/IP
(Nao Industrint Policy) haue tenounced thit ot onti-Nth*uion, *hith
only shows ho;,u litthe thE knap af the dyrcamirrninlqf Pandit Nehru.
' 
t' .r t 
.,t .,r t 
' 
., t.-.f'-- .'--.^^ .-^--ll l^--.^L^o--il)^ C*-t ^.-A6^
wno, jaceq with'the.lifboc in the iconomy, would hatte beenth.efirst arcong
.
tfn-fiot ta salute theNIP. 
Crtystal 
sfcc 
XeOfX
-0
--J.R.D. 
.Tata 
in 
'Berlin'Walls 
Should Fall,'
The Times of India, 1 August 1991.
5
e
C
t
I
tr
,s
--
I
|An<r
an4, 
fr'(o'nr-fr 
qi/l'
\./
-T'lJta't
wYfl, by+'ry
ry
1
I
t
I
I
I
I
I
I
I
I
I
t
I
I
I
.l
.t
" 
'i
,
The Myths Originatittgin
the Ascendancy and Decline
4+
India's Tryst with Destilny
C 
ocialism, 
which was part of the rhetoric 
under Prime Minister
JJ"*aharlal 
Nehru (who 
could be described 
aceurately as having
been schooled in Fabian 
Socialism) 
did not fully dominate 
and
constrain 
the actual poliry framework 
that was adopted 
under his
i.rdership.t 
Indeed, 
one of us (Bhagwati), 
who had been 
educated
at cambridge 
and 
\tu-as influenced 
by 
Joan 
Robinson, 
his tutor,
r,vent so far as to condemn 
the policy 
framework as deficient 
on
t:
t.:
Irrr
!=
s
I
F
socialism 
upon his return 
to India 
in 1961 
ryt 
workifg 
on 
t:'
econornics 
of poverty at the Indian 
planning 
comrnission 
at the
time, he went on to charact 
ertzd the 
'soti.littit 
pat-t.14
which tfre Parliament 
ha{:dgp-!:3-g 
f'social 
'!
..-,. --.-,9----.- " 
-
ancl ..orro*ic 
policy i* 
P.-.-ggI#iIJ254' 
" 
*t" t*ialist 
ffi
-*t 
t;cialism 
ir** ; ffipy; 
far rnore prominent 
place in the
1- 
-V/e 
provide some historical 
details corroborating 
this proposition 
-in
Appendlx 
1- 
Crystal 
srcc 
Xeorx
See BhaS"tii and 
Desai (1975)- . 
' 
.
.Socialisrn, 
underJawaharlal 
Nehru is'set out in greaterdepth 
in 
$ppent'rx
1-while 
.socialisml 
under.Indira 
Gandhri 
is distussed immediately 
belowin
the-rext. The former was likb a medium 
ivlerlotwhlle 
the.latte.r 
*1t a ful.l.
Uoai.a Cabernet 
Sauvignon'
t.
tl
'.n 
^*
rf 
, 
Lv \-.
'tt!1,F
">
,L-
4
I
The Myths Originating in the '4scendanry hnil Decline af Socialkm
c
domestic and forei with the sated of cornbating the
ong the measures
she tooklwere forced dilution offoreign effifrilfr?
I
firrns
to 40 pei cent or less; confinernent of investments by large dorgestic-
and foreign firms to nineteen narrowly define* highly capial-
prohibitive. 
restrictions on the layoff of workers in large firms. To
n"lonopoly owr 
fhe.irnpoffs aJrd
tsof seve
e also attempted a gbverrimenl'Idkeover o
food grains but had to retieat rnidway once it'became clear thart$is
was beyond the govenlmentls capacity 
CryStal 
Sfge*XeOfJlP
But rtri, .o-p-iehensive turn io ,o"ialisml*", not to last. Th;
erygolqy 
uq"L 
@Utt 
pel' ."pitt irygl"es
te final consumption
filtensive 
industries; 
-reservation 
of . l"re. 
""*b.t "f 
ltbo
I 
-
I 
intensive products for exclusive pT>ductigg bv small-scale
[enterprises;sfrictIirnits,on.thEsize.dCurban..lan
t-F .r t r.-- . -- 
rF^
ls
conceillgation ofwealth and economic power
I
n,^6'' ,t
(t\i'.h
further enhance governrnent control, she ortended government
wholesale trade
per cent per 
"nrlu ---T-*=-
^nsrng 
even more sigw-Sjy the miai:i9703; bvicience that the
raPl
. 
lt l-
tdly expandmg goverrurlent ct ontrols had closed nearly all avenues
acceleration under Prime Minister Rajiv Gandhi, especially i
ch 1986) an* 1,986-{1 .
fr/,F
The liberalization, complemented by la
--%
led to
x-l
some acceleration i
since the deficits
*94
been 
d the
export earnings 
necessary te finance the resulting debt servlce
tce 
q
!l
\"/
BoP
.Ca,r'Ei9
Fd 
o*r -**--?
}4":n':' 
t.l 
' 
, 
,1u.,,, 
,
La, 
t 
'-'1 '!!t 
'
.3
fiscal deficits,
46
Page 4


-
L
-
-
.A
!
r
_F
F
s
r
r
3, 
Th,ff"*
r
-e'
F
er
s
f
:...sr
..et
s
f
-Jawaharlal 
Nehru in a speech to the Constituent Assembly
(L.gislative), New Delhi, 17 February 1948-
I am saddened, though not surprise$ tofind that seueral citk*ef the A/IP
(Nao Industrint Policy) haue tenounced thit ot onti-Nth*uion, *hith
only shows ho;,u litthe thE knap af the dyrcamirrninlqf Pandit Nehru.
' 
t' .r t 
.,t .,r t 
' 
., t.-.f'-- .'--.^^ .-^--ll l^--.^L^o--il)^ C*-t ^.-A6^
wno, jaceq with'the.lifboc in the iconomy, would hatte beenth.efirst arcong
.
tfn-fiot ta salute theNIP. 
Crtystal 
sfcc 
XeOfX
-0
--J.R.D. 
.Tata 
in 
'Berlin'Walls 
Should Fall,'
The Times of India, 1 August 1991.
5
e
C
t
I
tr
,s
--
I
|An<r
an4, 
fr'(o'nr-fr 
qi/l'
\./
-T'lJta't
wYfl, by+'ry
ry
1
I
t
I
I
I
I
I
I
I
I
I
t
I
I
I
.l
.t
" 
'i
,
The Myths Originatittgin
the Ascendancy and Decline
4+
India's Tryst with Destilny
C 
ocialism, 
which was part of the rhetoric 
under Prime Minister
JJ"*aharlal 
Nehru (who 
could be described 
aceurately as having
been schooled in Fabian 
Socialism) 
did not fully dominate 
and
constrain 
the actual poliry framework 
that was adopted 
under his
i.rdership.t 
Indeed, 
one of us (Bhagwati), 
who had been 
educated
at cambridge 
and 
\tu-as influenced 
by 
Joan 
Robinson, 
his tutor,
r,vent so far as to condemn 
the policy 
framework as deficient 
on
t:
t.:
Irrr
!=
s
I
F
socialism 
upon his return 
to India 
in 1961 
ryt 
workifg 
on 
t:'
econornics 
of poverty at the Indian 
planning 
comrnission 
at the
time, he went on to charact 
ertzd the 
'soti.littit 
pat-t.14
which tfre Parliament 
ha{:dgp-!:3-g 
f'social 
'!
..-,. --.-,9----.- " 
-
ancl ..orro*ic 
policy i* 
P.-.-ggI#iIJ254' 
" 
*t" t*ialist 
ffi
-*t 
t;cialism 
ir** ; ffipy; 
far rnore prominent 
place in the
1- 
-V/e 
provide some historical 
details corroborating 
this proposition 
-in
Appendlx 
1- 
Crystal 
srcc 
Xeorx
See BhaS"tii and 
Desai (1975)- . 
' 
.
.Socialisrn, 
underJawaharlal 
Nehru is'set out in greaterdepth 
in 
$ppent'rx
1-while 
.socialisml 
under.Indira 
Gandhri 
is distussed immediately 
belowin
the-rext. The former was likb a medium 
ivlerlotwhlle 
the.latte.r 
*1t a ful.l.
Uoai.a Cabernet 
Sauvignon'
t.
tl
'.n 
^*
rf 
, 
Lv \-.
'tt!1,F
">
,L-
4
I
The Myths Originating in the '4scendanry hnil Decline af Socialkm
c
domestic and forei with the sated of cornbating the
ong the measures
she tooklwere forced dilution offoreign effifrilfr?
I
firrns
to 40 pei cent or less; confinernent of investments by large dorgestic-
and foreign firms to nineteen narrowly define* highly capial-
prohibitive. 
restrictions on the layoff of workers in large firms. To
n"lonopoly owr 
fhe.irnpoffs aJrd
tsof seve
e also attempted a gbverrimenl'Idkeover o
food grains but had to retieat rnidway once it'became clear thart$is
was beyond the govenlmentls capacity 
CryStal 
Sfge*XeOfJlP
But rtri, .o-p-iehensive turn io ,o"ialisml*", not to last. Th;
erygolqy 
uq"L 
@Utt 
pel' ."pitt irygl"es
te final consumption
filtensive 
industries; 
-reservation 
of . l"re. 
""*b.t "f 
ltbo
I 
-
I 
intensive products for exclusive pT>ductigg bv small-scale
[enterprises;sfrictIirnits,on.thEsize.dCurban..lan
t-F .r t r.-- . -- 
rF^
ls
conceillgation ofwealth and economic power
I
n,^6'' ,t
(t\i'.h
further enhance governrnent control, she ortended government
wholesale trade
per cent per 
"nrlu ---T-*=-
^nsrng 
even more sigw-Sjy the miai:i9703; bvicience that the
raPl
. 
lt l-
tdly expandmg goverrurlent ct ontrols had closed nearly all avenues
acceleration under Prime Minister Rajiv Gandhi, especially i
ch 1986) an* 1,986-{1 .
fr/,F
The liberalization, complemented by la
--%
led to
x-l
some acceleration i
since the deficits
*94
been 
d the
export earnings 
necessary te finance the resulting debt servlce
tce 
q
!l
\"/
BoP
.Ca,r'Ei9
Fd 
o*r -**--?
}4":n':' 
t.l 
' 
, 
,1u.,,, 
,
La, 
t 
'-'1 '!!t 
'
.3
fiscal deficits,
46
6l India's Tryst utith Deitiny
This happened to the chagrin of the intellJctuals on the left.
Indeed, during the first half of the IWAs, when Indira Gandhi was
irnplernenting_her socialist agenda, these intellecn:als had sought
to 
justift 
her poliry changes by propagatjtg many critiques, indeed
rnyths, about the developrnenrstretegy.=that India had adopted at
the time of independence. Principally, they had argued that India
had pursued growth for its own sakg;and that grsr&b@
.I
".*
_result 
in poverty 
,,allevi'r,tio4. Jh.y 
had also 
insisted 
that
redistribution offered the only effective avenue to povert]
alleviation- These, and related critiques, would nor,v be revived as
\l'eapons with which to undermine the reforms that were clearly a 
.
l-l
\
-
-
- 
,
I
-
-
-
-
-
-
-a
a
\
t
\
e
-\
?
\
I
-
r
-
!
!
*r
\,
rt
s
I
I
:
oo 
.
rnassive shih awav frorn socialism-
J
-These criiics had little option but to retreat from realiry into
fantasv if
J **
re to_calrJ_any*c_qlr1iic1ion. For, by 1980, the wave,
- 
r i ) t;"*-'-:. 
- **'\.
it-ft. glp,[tad virtudly drowned out
id 
jrrowth 
of the econorriv. 
.In 
turn, the lonr
rg-
ghg proqp 
lgtryJn 
turn,
@t!4l&b
standing'commitment by Indian lerd"rS'to the objective bf
, eradicating-pc:,'er{'had-ols'c=b'eelt-Iii;sir--ate'C=bicaiise 
,{as 
-u="€ 
aigi:c
*:*-:-J'*- 
- 
' 
:' 
'':'- ^-
below) the lack of growth meant ltt"t i itagnant Economy was
rndanilv clear to those 
--
failing to make a dent o failing to make 
a dg_ll_gg_pggrty. 
It w?s abundantly clear to
who did not wear ideolosical-blinders that the socialist Dath pam Indlra
' 
-} 
r"1 
*-
"!
'L 
- 
''*,
. t 
"'
i
i
I 
l.'.J 
i
'i
,:"t..lc 
I 
-
I
t-
,)"
ogical-blinders that the socialist path Indj
socialism by Indira Gandhi now had to be revived' to deride the
shift away from the failed socialism thatlhe reforms implied. The
psychological need to do this, gathering steam since 1991, was all
the greater precisely because the reforms were-so successful, not
rnerely in accelerating India's grov/th rate but also in frndlrr reducin
poverry 
,
@hs 
definea rich tapestrv relatins'to srowth. noverW
. ,--:**:--{++ .--_--:---L ,, -_-_L--*
r"a 
:1.j{ 
q=t1_j-ong 
the litany of co.mplaints; oqe caR find
\ 
-l 
'' ur:""'
-')
-t4
- 
4l-
Page 5


-
L
-
-
.A
!
r
_F
F
s
r
r
3, 
Th,ff"*
r
-e'
F
er
s
f
:...sr
..et
s
f
-Jawaharlal 
Nehru in a speech to the Constituent Assembly
(L.gislative), New Delhi, 17 February 1948-
I am saddened, though not surprise$ tofind that seueral citk*ef the A/IP
(Nao Industrint Policy) haue tenounced thit ot onti-Nth*uion, *hith
only shows ho;,u litthe thE knap af the dyrcamirrninlqf Pandit Nehru.
' 
t' .r t 
.,t .,r t 
' 
., t.-.f'-- .'--.^^ .-^--ll l^--.^L^o--il)^ C*-t ^.-A6^
wno, jaceq with'the.lifboc in the iconomy, would hatte beenth.efirst arcong
.
tfn-fiot ta salute theNIP. 
Crtystal 
sfcc 
XeOfX
-0
--J.R.D. 
.Tata 
in 
'Berlin'Walls 
Should Fall,'
The Times of India, 1 August 1991.
5
e
C
t
I
tr
,s
--
I
|An<r
an4, 
fr'(o'nr-fr 
qi/l'
\./
-T'lJta't
wYfl, by+'ry
ry
1
I
t
I
I
I
I
I
I
I
I
I
t
I
I
I
.l
.t
" 
'i
,
The Myths Originatittgin
the Ascendancy and Decline
4+
India's Tryst with Destilny
C 
ocialism, 
which was part of the rhetoric 
under Prime Minister
JJ"*aharlal 
Nehru (who 
could be described 
aceurately as having
been schooled in Fabian 
Socialism) 
did not fully dominate 
and
constrain 
the actual poliry framework 
that was adopted 
under his
i.rdership.t 
Indeed, 
one of us (Bhagwati), 
who had been 
educated
at cambridge 
and 
\tu-as influenced 
by 
Joan 
Robinson, 
his tutor,
r,vent so far as to condemn 
the policy 
framework as deficient 
on
t:
t.:
Irrr
!=
s
I
F
socialism 
upon his return 
to India 
in 1961 
ryt 
workifg 
on 
t:'
econornics 
of poverty at the Indian 
planning 
comrnission 
at the
time, he went on to charact 
ertzd the 
'soti.littit 
pat-t.14
which tfre Parliament 
ha{:dgp-!:3-g 
f'social 
'!
..-,. --.-,9----.- " 
-
ancl ..orro*ic 
policy i* 
P.-.-ggI#iIJ254' 
" 
*t" t*ialist 
ffi
-*t 
t;cialism 
ir** ; ffipy; 
far rnore prominent 
place in the
1- 
-V/e 
provide some historical 
details corroborating 
this proposition 
-in
Appendlx 
1- 
Crystal 
srcc 
Xeorx
See BhaS"tii and 
Desai (1975)- . 
' 
.
.Socialisrn, 
underJawaharlal 
Nehru is'set out in greaterdepth 
in 
$ppent'rx
1-while 
.socialisml 
under.Indira 
Gandhri 
is distussed immediately 
belowin
the-rext. The former was likb a medium 
ivlerlotwhlle 
the.latte.r 
*1t a ful.l.
Uoai.a Cabernet 
Sauvignon'
t.
tl
'.n 
^*
rf 
, 
Lv \-.
'tt!1,F
">
,L-
4
I
The Myths Originating in the '4scendanry hnil Decline af Socialkm
c
domestic and forei with the sated of cornbating the
ong the measures
she tooklwere forced dilution offoreign effifrilfr?
I
firrns
to 40 pei cent or less; confinernent of investments by large dorgestic-
and foreign firms to nineteen narrowly define* highly capial-
prohibitive. 
restrictions on the layoff of workers in large firms. To
n"lonopoly owr 
fhe.irnpoffs aJrd
tsof seve
e also attempted a gbverrimenl'Idkeover o
food grains but had to retieat rnidway once it'became clear thart$is
was beyond the govenlmentls capacity 
CryStal 
Sfge*XeOfJlP
But rtri, .o-p-iehensive turn io ,o"ialisml*", not to last. Th;
erygolqy 
uq"L 
@Utt 
pel' ."pitt irygl"es
te final consumption
filtensive 
industries; 
-reservation 
of . l"re. 
""*b.t "f 
ltbo
I 
-
I 
intensive products for exclusive pT>ductigg bv small-scale
[enterprises;sfrictIirnits,on.thEsize.dCurban..lan
t-F .r t r.-- . -- 
rF^
ls
conceillgation ofwealth and economic power
I
n,^6'' ,t
(t\i'.h
further enhance governrnent control, she ortended government
wholesale trade
per cent per 
"nrlu ---T-*=-
^nsrng 
even more sigw-Sjy the miai:i9703; bvicience that the
raPl
. 
lt l-
tdly expandmg goverrurlent ct ontrols had closed nearly all avenues
acceleration under Prime Minister Rajiv Gandhi, especially i
ch 1986) an* 1,986-{1 .
fr/,F
The liberalization, complemented by la
--%
led to
x-l
some acceleration i
since the deficits
*94
been 
d the
export earnings 
necessary te finance the resulting debt servlce
tce 
q
!l
\"/
BoP
.Ca,r'Ei9
Fd 
o*r -**--?
}4":n':' 
t.l 
' 
, 
,1u.,,, 
,
La, 
t 
'-'1 '!!t 
'
.3
fiscal deficits,
46
6l India's Tryst utith Deitiny
This happened to the chagrin of the intellJctuals on the left.
Indeed, during the first half of the IWAs, when Indira Gandhi was
irnplernenting_her socialist agenda, these intellecn:als had sought
to 
justift 
her poliry changes by propagatjtg many critiques, indeed
rnyths, about the developrnenrstretegy.=that India had adopted at
the time of independence. Principally, they had argued that India
had pursued growth for its own sakg;and that grsr&b@
.I
".*
_result 
in poverty 
,,allevi'r,tio4. Jh.y 
had also 
insisted 
that
redistribution offered the only effective avenue to povert]
alleviation- These, and related critiques, would nor,v be revived as
\l'eapons with which to undermine the reforms that were clearly a 
.
l-l
\
-
-
- 
,
I
-
-
-
-
-
-
-a
a
\
t
\
e
-\
?
\
I
-
r
-
!
!
*r
\,
rt
s
I
I
:
oo 
.
rnassive shih awav frorn socialism-
J
-These criiics had little option but to retreat from realiry into
fantasv if
J **
re to_calrJ_any*c_qlr1iic1ion. For, by 1980, the wave,
- 
r i ) t;"*-'-:. 
- **'\.
it-ft. glp,[tad virtudly drowned out
id 
jrrowth 
of the econorriv. 
.In 
turn, the lonr
rg-
ghg proqp 
lgtryJn 
turn,
@t!4l&b
standing'commitment by Indian lerd"rS'to the objective bf
, eradicating-pc:,'er{'had-ols'c=b'eelt-Iii;sir--ate'C=bicaiise 
,{as 
-u="€ 
aigi:c
*:*-:-J'*- 
- 
' 
:' 
'':'- ^-
below) the lack of growth meant ltt"t i itagnant Economy was
rndanilv clear to those 
--
failing to make a dent o failing to make 
a dg_ll_gg_pggrty. 
It w?s abundantly clear to
who did not wear ideolosical-blinders that the socialist Dath pam Indlra
' 
-} 
r"1 
*-
"!
'L 
- 
''*,
. t 
"'
i
i
I 
l.'.J 
i
'i
,:"t..lc 
I 
-
I
t-
,)"
ogical-blinders that the socialist path Indj
socialism by Indira Gandhi now had to be revived' to deride the
shift away from the failed socialism thatlhe reforms implied. The
psychological need to do this, gathering steam since 1991, was all
the greater precisely because the reforms were-so successful, not
rnerely in accelerating India's grov/th rate but also in frndlrr reducin
poverry 
,
@hs 
definea rich tapestrv relatins'to srowth. noverW
. ,--:**:--{++ .--_--:---L ,, -_-_L--*
r"a 
:1.j{ 
q=t1_j-ong 
the litany of co.mplaints; oqe caR find
\ 
-l 
'' ur:""'
-')
-t4
- 
4l-
}}ry
lt
passionate assertionsthat- the reforms addless growth but not
rty and sqglAl
; 
that the growth they may ggnerate is in
any t the reforms h
that they have increased corruption; that theygve
disadvanaged Scheduled Caste 
tSC) 
and Scheduled Tribe (ST)
groups; and indeed much else that makes one wonder if the critics G
t\.
l7 l
\ ?\^" 
-
^,f)
* ^ -\;.\!-t' \
tx I I \
G-r 
t ul,-, 
,,r 
- 
have let tlreir ideology and political preferences entirely cloud their
\'- 
. 
. 
\ir*
'i'': 
';,; 
,iudgement,. 
.,.. 
....',,, 
.. 
, 
'i 
':'. ' , 
. 
.it, 
"'.,.r
. 
',rrt"\ 
- -
fr 
\ 
Art "- 
- 
\ 
Since these mythE, endlessly repeated, muddy the discourse on
the post-1991 
'reforrns, 
and often are the weapons.used to wound
and'r-nairn the..reforrns in thg public'eye; it is important to-sort
them out, rtrd iefuie ih-em systematicallywith logic and fects. This
is the usk to which we turn in the followingfrye chapters under
. 
various,he-adinp
-9
"AA
. 
.T\J
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