Page 52 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Indian Economic Policy

Notes • Most forthright criticism of the reform process came from the former President K R Narayanan
on the eve of the Republic Day message on 25 January 2000 when he warned : “The fury’of the
patient and long-suffering people would be unleashed if the three-way fast lane of liberalisation,
privatisation and globalisation failed to provide ‘safe pedestrian crossings’ for the unempowered
in India.” This indictment of the reform process only underlines the scant care the market forces
show to the poor. Mr. Narayanan has drawn attention to the tragic contradictions in our society,
particularly the great regional and social inequalities in the following words :
• “We have one of the world’s largest reservoirs of technical personnel but also the world’s largest
number of illiterates; the world’s largest middle class but also the largest number of people
below the poverty line; and the largest number of children suffering from malnutrition. One
half of our society guzzles aerated beverages while the other has to make do with palmfuls of
muddied water.”
• While justifying the trajectories of modern progress such as factories, dams and satellites, Mr.
Narayanan, however, cautioned against ecological and environmental devastation leading to
uprooting of hu-man settlements, especially of the tribals and the poor. He, therefore, mentioned”
“Ways and methods could be found for countering the harmful impact of modern technology
on the lives of the populace both by the government and civil society.”
• Pointing to the regional and social inequalities accompanying the country’s economic growth,
Mr. Narayanan cautioned : “Many a social upheaval can be traced to the neglect of the lowest
tier of society, whose discontent moves towards the path of violence. Dalits and tribals are the
most affected by all this”.
• Prime Minister M1onmohan Singh also is of the view : “The challenge before us is to combine
the Economics of growth with the Economics of equity and social justice. We have no option
but to walk on two legs.”
4.3 Key-Words

1. Consumption : The using up of a resource.
2. Retrenchment : (i) A cutting down or back; reduction.
(ii) A curtailment of expenses,
(iii) Entrenchment consisting of an additional interior fortification to prolong
the defense.
4.4 Review Questions

1. Discuss the economic reforms in India since 1991.
2. What is the impact on labour of economic reforms? Explain.
3. Write a short note on the Foreign Investment.
Answers: Self-Assessment

1. (i)(a) (ii)(b) (iii)(c)
4.5 Further Readings

1. Indian Economy; Gaurav Datt and Aswani Mahajan; S. Chand and Company
LTD. Ram Nagar, New Delhi-110055.
2. The Indian Economy; S.K. Ray; Prentic, Hall of India Private Limited
New Delhi - 110001.

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