India: A conglomeration of economic philosophies -Prof. Pritam Kharat
India: A conglomeration of economic philosophies.
Author: Prof. Pritam Kharat
The dawn of 20th century was seeded with “ Industrial revolution”. As Industrial revolution gathered pace, need for wider markets to sell produced goods was eventual. Rising aspirations to dominate whole world lead to policy of colonization to many empires. But, this revolution has negative impactts also. Industries oversaw rise of capitalists which resulted in exploitation of lower class or workers .Thereafter financial divide between upper class and lower class was going to be ever increasing . In this situation Karl Marx enumerated theory of “COMMUNISM”. Communism is based on common ownership of means of production . In 0 contrast , CAPITALISM, promotes profit driven private ownership of means of production.
Journey from capitalism to communism has to pass through a phase of socialsm . Socialism is a cause which converts capitalist society to communist society . Socialism is characterized by social ownership of means of production and co-operative management of economy .But Lenin (another communist) claimed ,socialism will not arise through natural decay of capitalism .It requires leadership for uneducated and depressed workers. Lenin toppled Russian government and became champion of socialism and working class .
Concept of state ownership of means of production was followed by many countries all over the world .After World War II, USA and Russia emerged as two super powers . On the eve of World War II, cold war started between capitalist USA & socialist soviet union .Soviet union started supporting and funding communist parties all over the world .
Chinese political leader Mao Zedong (communist) and his followers known as Maoists brought revolution by farmers and peasants and not by workers .
In 1947, India got independence .In aftermath of World War II,because of cold war between USA & soviet union ,many countries were asked to join one of the two fronts .Our first Prime Minister Jawaharlal Nehru refused to join any front and then established ‘Non-aligned’ movement ,which was supported by 120 plus nations later.
In 1971, India deviated from non-aligned movement and signed “ Indo-soviet treaty of peace friendship and cooperation .This step was taken by India during Bangladesh liberation was under pressure of USA and China who were supporters of Pakistan .Dramatically in 1976 word “socialist” was added to Preamble of Indian Constitution by 42ndamendment during emergency .Till 1991,all industries were under control of Indian government ,indicates India followed socialism till this year.
In 1991 amid economic crisis ,Indian govt. ushered in several reforms like liberalisation , privatisation and globalization. These reforms made India a mixed economy .Wealth accumulation by few Industrialists in India shows capitalists existence. Increasing FDI in various sectors ,government reduces its burden but it opens market for private players .But as mixed economy ,Indian govt. promotes public owned companies which run for welfare of citizens and are not profit driven. Indian railways ,Public Sector Undertakings ,inflation control policies are good examples of socialism.
Though as earlier said, Communism is a theory which can never be implemented to the fullest in large economies like India. We can notice communism in tribal community since all the sources are community since all the resources are community owned.
So it can be said that India is a cluster of capitalism ,socialism and communism.
By-Prof. Pritam Kharat
By-Prof. Pritam Kharat
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