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Rise of the Indian economy: Awaiting a neo-Hindu rate of growth

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By Gaurav Sharma

Yesterday, India celebrated its 68th year of Independence. From tenderly treading baby steps in the nascent stages of nationhood to galloping briskly towards a greater stake in the global economy, the Indian journey has been a roller-coaster ride.

Monikers such Shining India and the Bright spot highlight the growing economic clout of the country and arouse global interest in India, both as a market and an investment hotspot.

What was once the tedious Hindu rate of growth of 1 per cent in the first three decades following a century of exploitative British colonization has now rocketed into a burgeoning 7 per cent growth trajectory. When the World Bank expects India to top its growth outlook charts for 2015-2016, with the economy growing steadily between 7.5-8.3 per cent, it further cements the India’s rise as an economic power.

How did we traverse the topsy-turvy journey, through the crest and the trough? How did we reach the current state of being?

After Independence, India’s first Prime Minister Jawaharlal Nehru (through the statistician Prasanta Chandra Mahalanobis) undertook a socialist reform of the country. Skeptical of his colonial experience, Nehru adopted a protectionist economic policy, under which development came largely under the ambit of the government. Central planning, regulation and import substitution emerged as the key features of the Five Year Plans based upon the Soviet model.

Nehru’s reply to industrialist JRD Tata, “Never talk to me of profit. It is a dirty word”, emboldens the denigrating and suspicious mindset of politicos towards the private sector prevailing during that time. Industries such as steel mining, insurance among a host of other industries were controlled and run by the public sector.

In 1965, the Green Revolution was ushered in, to facelift the agriculture sector. Use of high yield variety seeds (HYV) and genetically modified (GM) crops not only resulted in India achieving self-reliance in food security but also stealthily brought the problem of income disparity and institutional breakdown to the fore.

Although the Morarji Desai government of 1977 did ease restrictions on the economy by removing price controls and reduction of tax rate, by the end of the decade India was staring itself in the dark pit of external payment crisis. With the disintegration of Soviet Union and a sharp decline in oil prices, India’s balance of payments (BoP) had enlarged to dangerous proportions.

India was forced to borrow a heavy sum of Rs 28,000 crore from the International Monetary Fund (IMF), the largest sum for any developing nation at the time.

In the 1980’s, the Indira Gandhi government was successful in stalling the prospective deterioration underlined in the loan conditions, by unleashing a slew of reform measures such as reducing import duties, delicensing industry and revamping the public sector. Transformation was on it way.

Then in 1991, a breakthrough was achieved by Narasimha Rao while working in tandem with the then finance minister Manmohan Singh. Public monopoly came to an end, interest rates and tariffs were reduced, license raj was quashed and the country was opened up to the world. Globalization, Privatization and Liberalization emerged as the motto of the new dispensation.

The new millennium (particularly the period 2003-2007), saw India touch a high 9 percent growth rate, with Goldman Sachs predicting India to become the third largest economy by 2025.

Despite donning the hat of the new global economic power, India’s fundamentals were tested during the 2008-09 recession. Although it managed to brace through the economic cyclone, in the aftermath of the disaster, India’s growth rate had tumbled down below 5 per cent.

High current account deficit, weak rupee and a sluggish manufacturing sector aggravated the situation. Furthermore, the tapering of quantitative easing in the US meant that foreign investment into the country ebbed. India’s global standing took a hit even as the ease-of-doing-business index ranked at an abysmal 142 out of 189 countries.

Fast track to today. And with the change in political power, things have started changing. With almost 15 years of developmental experience behind his back, Narendra Modi has  promised a slew of reforms aimed at reviving India’s economic muscle.

Critical sectors of the economy have been opened-up to woo foreign investors and to revivify the ailing sectors. FDI in defense has been increased to 100 per cent and insurance FDI limit has spiked up from 26 to 49 per cent.

Not to get fixated with the idea of growth as the sole plank of development, Modi has also vied for social initiatives. This is in line with what Amartya Sen (a notable critic of Modi) believes economics to be; a value of freedom not limited to a utilitarian concept of wealth and income.

On his Independence Day speech, Modi continued with his hawkeye focus on development and boisterously claimed that his government had scaled down the complex labour laws into 4 simplified codes; safety, social security, wage and industrial relations. It will be interesting to see how the grand plan actualizes.

If Kisan Kalyana Yojana ends up as mere rechristening of the agriculture ministry rather than a new scheme, Modi’s credibility will surely take a hit. Dreaming of an entrepreneurial revolution and setting a target of three years for rural electrification plans are ambitious plans indeed. Still, in the midst of the precocious focus on development, the key area of electoral reforms has been left untouched.

This only shows how adept Modi is when it comes to towing the precarious line of economic reforms and social development–of leadership and populism–with much alacrity. If only as a photo-op, critical social issues have not been left sidelined.

Perhaps this how the neo-hindu statesman works. When, and if he walks the talk, can we expect a new neo-Hindu rate of growth?

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10 Must Know Facts About Subhas Chandra Bose

Subhas Chandra Bose was a true legend in every essence and one of the most decorated freedom fighters who ever fought for incredible India.

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Subhas Chandra Bose views on attaining freedom were very much different from other Congress leaders. Wikimedia Commons
Subhas Chandra Bose views on attaining freedom were very much different from other Congress leaders. Wikimedia Commons
  • Subhas Chandra Bose was a true patriot and a man of principle who left no stone unturned to bring independence to India
  • Subhas graduated with Bachelors of Arts from the University of Calcutta
  • Subhas Chandra Bose never complied with the thoughts of Gandhi

NEW DELHI: A true Indian can never forget the very famous slogan of Netaji Subhas Chandra Bose, “You give me blood, and I’ll give you Freedom”. His words immediately sparked the zeal of patriotism in the hearts of many Indians during the independence struggle. Even today these words are as inspiring as they were at that time. Subhas Chandra Bose was a true patriot and a man of principle who left no stone unturned to bring independence to India.

Netaji Subhas Chandra Bose was born on January 23, 1897, in Orissa, Bengal division. He is considered as one of the most esteemed freedom fighters of India who was the mastermind behind raising the Azad Hind Fauj. This force was created to fight the British people and was the first Indian armed force. Subhas Chandra Bose was a true legend in every essence and one of the most decorated freedom fighters who ever fought for incredible India.

Netaji Subhas Chandra Bose was born on January 23, 1897, in Orissa, Bengal division. Wikimedia Commons
Netaji Subhas Chandra Bose was born on January 23, 1897, in Orissa, Bengal division. Wikimedia Commons

He was the ninth member of a family of 14. In January 1902, Subhas Chandra Bose joined Protestant European school. Due to his extreme brilliance and skills, Subhas Chandra Bose was admired by his principal. Subhas graduated with Bachelors of Arts from the University of Calcutta. After that, he left India in 1919 and promised his father that he will be taking Indian Civil services examination.

Also Read: 10 Facts You Need To Know About Homi Bhabha

On 19 November 1919, he matriculated from Cambridge and stood fourth overall but he didn’t pursue his job over there as he didn’t want to work under the British. Thereafter, in 1921, he gave up his dream of civil services and returned to India. Two years down the lane, Subhas Chandra Bose was elected as the president of all India youth congress and under the leadership of Chittaranjan Das. During that time only, he was also selected as the CEO of Calcutta Municipal Corporation.

He staged many campaigns against the atrocities of British rule in India and got arrested in a roundup of nationalists. After he got released from the prison, he came in contact with Jawaharlal Nehru and started working for the independence struggle. He even wrote a book named, ‘The Indian Struggle’ which was published in 1935. His book was based on the facts that he witnessed personally and the painful experiences of his fellow freedom fighters.

Related imageAfter he got released from the prison, he came in contact with Jawaharlal Nehru and started working for the independence struggle. Wikimedia Commons
After he got released from the prison, he came in contact with Jawaharlal Nehru and started working for the independence struggle. Wikimedia Commons

He was also elected as the mayor of Calcutta in 1930. He later on accepted for the Nomination of the president of India.

 

Take a look at some of the astonishing facts related to Subhas Chandra Bose.
1. Earlier in his career, Subhas Chandra Bose was the leader of the radical wing of the Indian National Congress in the late 1920s and 1930s. After taking a note of his efforts, he was elected as the Congress President in 1938 and 1939. But due to some differences with Mohandas Karamchand Gandhi and the Congress high command, he has been expelled from Congress leadership positions in the very same year. Subhas Chandra Bose openly criticized Congress’ foreign and internal policies.

Also Read: 15 Facts To Know About Arnab Goswami and Republic TV

2. Being a hardcore freedom fighter, Subhas Chandra Bose came under direct threat of British government. Between 1921and 1941, he was imprisoned eleven times for his fight for complete independence.
3. Subhas Chandra Bose never complied with the thoughts of Gandhi. He believed that the tactics of non-violence would never be sufficient to secure independence and rather advocated violent resistance to secure the nation.

4. To fuel the spirit of independence, Subhas Chandra Bose visited many countries Soviet Union, Nazi Germany and Imperial Japan. He requested all the country leaders to allow their alliance for securing India’s independence. It initiated his move at the outset of the Second World War and during that time, most of the nations were building their military might. Finally, with the assistance from Imperial Japan, Subhas Chandra Bose raised Azad Hind Fauj or Indian National Army (INA). Japan offered monetary, political, diplomatic and military assistance to the force. Later, the Azad Hind Fauj was stationed at Andaman and Nicobar Islands and then travelled all the way to Manipur in India.

5. On August 23, 2007, Japanese Prime Minister Shinzo Abe personally visited the Subhas Chandra Bose memorial hall in Kolkata and later met his family members also. Prime Minister Abe quoted, “, “The Japanese are deeply moved by Bose’s strong will to have led the Indian independence movement from British rule.”

Subhas Chandra Bose was elected as the president of all India youth congress and under the leadership of Chittaranjan Das. Wikimedia Commons
Subhas Chandra Bose was elected as the president of all India youth congress and under the leadership of Chittaranjan Das. Wikimedia Commons

6. Subhas Chandra Bose was successful in establishing the Azad Hind Radio station in Germany and thus stoked up the Indian nationalist movement in East Asia.

Also Read: 10 must-know facts about Anand Mahindra

7. Subhas Chandra Bose was very much inspired by Bhagavad Gita and drew a lot of inspiration from it. He was also very much moved by Swami Vivekananda and his teaching on universal brotherhood, his nationalist thoughts and his emphasis on social service and much other reform.

8. Subhas Chandra Bose views on attaining freedom were very much different from other leaders. Congress wanted to gain independence through phases of a dominion status, whereas he stressed upon complete freedom. For his will to fight for his country, he was considered as a true patriot even by some of his rivals. He just wanted freedom for his nation and he didn’t mind going to anyone for assistance.

9. After successfully clearing his Indian Civil Services examination, Subhash Chandra Bose refused to obey the custom of carrying his umbrella while meeting the Governor General at his office. He never tolerated any misbehaviour in his life.

10. Subhash Chandra Bose travelled to Germany while attempting with a daring escape from his house arrest in India. He travelled from Kolkata to Gomo by a car and from there to Peshawar by train. He then went to Kabul and proceeded directly to Germany to seek help from Adolf Hitler for India’s independence. After many attempts, he was able to speak with Hitler.

Subhash Chandra Bose travelled to Germany to seek Adolf Hitler's help. Wikimedia Commons
Subhash Chandra Bose travelled to Germany to seek Adolf Hitler’s help. Wikimedia Commons

Subhas Chandra Bose death still remains a mystery at large. As per the government report, he died in a plane crash on 18 August 1945. But this theory is refuted by many historians and scholars. In the book, “Bose: The Indian Samurai – Netaji and the INA Military Assessment”, Maj Gen G D Bakshi (retd), has pointed out that the above report was made by Japanese intelligence agencies to help Subhas Chandra Bose to make his way to the Soviet Union.

In 2015, Prime Minister Narendra Modi met the family members of Subhas Chandra Bose and announced the declassification of files related to his life. Later on, 100 secret files were made public by the central government.