Back to the new-old: West wind, East wind, or the warnings of a storm?

India has been well and truly bitten by the big-country bug, and is committed once more to import substitution-on-crutches, writes T N Ninan


T N Ninan

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India’s economic reforms, 1991 and after, were an investment in freer markets, domestic as well as global. The reforms were influenced by the ideas of the Reagan-Thatcher era on a reduced governmental role in the economy. The domestic initialisation for this was LPG: Liberalisation, privatisation, globalisation. Though implemented in stages and only partially, the belief was that greater market orientation would work to India’s benefit. And it did, delivering faster economic growth, lower inflation, a better trade balance, and external economic viability.

But disenchantment has grown because of the failure to boost manufacturing, creating a scarcity of quality jobs and an increase in inequality. In addition, there has developed a vulnerability to China on systemically important products and materials, in
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

First Published: Jul 14 2023 | 7:25 PM IST

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