Economic sovereignty for India

Our country needs economic discipline combined with focused approach in our activities. This is implicitly understood. Any progress and development requires hard work and discipline among other things. Hard work, and discipline are required irrespective of the direction that we take. In economic front, the government in general has adopted polices that are aligned with the free market economic principles. International framework along with the global trade agreements direct our policies. These frameworks and policies ensures the continuity of the existing economic order and takes us deeper into the free market economy.

The problems with the free market economy are known. The cost of Food, clothing, shelter, Health, and education escalates. The affordability of basic necessities would be reduced to a large population or makes affordability more difficult. Tremendous pressure would be exerted on individual earnings, family systems, relationships and elegant interactions among individuals.

Progress has two components – streamlined operations optimizing the utilization of resources to achieve next level of prosperity. With the optimized operations, the availability of resources may saturate the growth prospects. Ability to mobilize additional resources implies enhanced opportunity for growth. Mobilization of resources has multiple facets – but most of them are not based on sound sustainable principles. For example, access to capital is possible through foreign investments – but excessive investment increases inflation, depreciates real value of money and tilts the balance in distribution of wealth across social sectors. The life may become difficult for many while the GDP growth is steadily growing.

For Indian economy, there are additional problems. Choosing the path and ensuring streamlined executions. A path completely aligned with free market economy – even pursued diligently may not produce intended results. Selection of an alternate path is not easy but inevitable. Economics based on simplicity, and thrifty utilization may be detrimental to the unsustainable developed economies. But, simplicity based economy would save billions of populations from the trap of artificial money or reduce its effects.

Responding to the developmental pressure may be inevitable to the Indian government. But, while doing so, would it initiate concrete steps leading to directional change for a better world? Would India move towards economic sovereignty in the real sense?

Context: Modi government has indicated initiating tough measures to streamline Indian economy. Proposals for 100% FDI in defence, allowing of foreign universities in education sector, allowing operation of market forces in many sectors – continuing the economic policies of previous governments – are being discussed.

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