Economic crises are often opportunities in disguise. In 1991, the balance of payment crisis which forced India to pledge its gold reserve to raise money, set the stage for P.V. Narasimha Rao and Manmohan Singh to initiate reforms to liberalise the economy. Now the Narendra Modi government is using the Covid-19 pandemic-induced financial crisis to push through many held-up reforms to make India “self-reliant”, with less government control and more privatisation.
The package announced by Finance Minister Nirmala Sitharaman revealed that the government had a different prescription for the ailing economy. In almost similar circumstances in 2008-09, prime minister Manmohan Singh focused on creating demand by giving cash transfers, a method which the Congress and a host of noted economists like Raghuram Rajan and Abhijit Banerjee still vouch for.
The Modi government is betting on infusing liquidity into the system, extending easy loans to enterprises and preventing them from going bankrupt. The emphasis has been on securing the supply side. The message is clear—there are no free lunches for the industry. If there are hindrances in running a business, the government will remove it. Even the migrant labourers and the poor who were hit hard by the lockdown were provided support through the institutional methods of the Public Distribution System, the Ujjwala scheme for cooking gas and women Jan Dhan accounts.
Ironically, the Atma Nirbhar push has been used to dismantle the Nehruvian structures of self reliance—the public sector units—and amend the Essential Commodities Act 1955, which will help deregulate the agriculture sector. The government has opened up mining, aviation, defence, space and atomic energy sectors for greater private participation.
Denne historien er fra May 31, 2020-utgaven av THE WEEK.
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Denne historien er fra May 31, 2020-utgaven av THE WEEK.
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A golden girl
One of India's most formidable beauties passed away earlier this month. The odd thing is she would absolutely hate this obituary; she hated being written about and avoided publicity for all of her nine decades. Indira Aswani was 93 when she died. But anyone who encountered her, even briefly, was in such awe of her grace and poise, and one could not but remember her forever.
The interest in wine is growing delightfully in India
The renowned British wine writer and television presenter Jancis Robinson, 74, recently came to Delhi and Mumbai to reacquaint herself with India's wine industry. This was the Robinson's fourth visit to India; the last one was seven years ago. On this trip, Robinson and her husband, restaurateur Nicholas Lander, were hosted by the Taj Hotels and Sonal Holland, India's only Master of Wine.
United in the states
Indian-Americans coming together under the Democratic umbrella could get Harris over the line in key battlegrounds
COVER DRIVE
Usage-driven motor insurance policies offer several benefits
GDP as the only measure of progress is illogical
Dasho Karma Ura, one of the world's leading happiness experts, has guided Bhutan's unique gross national happiness (GNH) project. He uses empirical data to show that money cannot buy happiness in all circumstances, rather it is family and health that have the strongest positive effect on happiness. Excerpts from an interview:
India is not a controlling big brother
Prime Minister Tshering Tobgay considers India a benevolent elder sibling as the \"big brotherly attitude\" is happily missing from bilateral ties. He thinks the relationship shared by the two countries has become a model of friendship not just for the region, but for the entire world. \"India's attitude is definitely not of a big brother who is controlling and does not allow the little brother to blossom and grow,\" says Tobgay in an exclusive interview with THE WEEK.
Comrade with no foes
Lal Salaam, Comrade Yechury-you were quite a guy!
Pinning down saffron
In her first political bout, Vinesh Phogat rides on the anti-BJP sentiment across Haryana
MAKE IN MANIPUR
Home-made rockets and weapons from across the border are escalating the conflict
SAHEB LOSES STEAM
Coalition dynamics and poor electoral prospects continue to diminish Ajit Pawar's political stock