Solving India’s Income Problem (Part 10)

Past Writings

I have written in the past about India’s need for a new direction (what I have called, ‘Nayi Disha’). “Freedom is the bedrock of prosperity. With every new leader in power, liberty has been diminishing and government control over the economy has been increasing. Since the leaders in power are unlikely to increase freedom and reverse the anti-prosperity measures that are still widespread, it is up to the people to lead a political and economic revolution if we are to make Indians rich.”

I wrote in a recent essay: “In India, we know all too well how to destroy wealth. Suppression of freedom, high taxes on economic activity by individuals and businesses, putting hurdles on education, taxing imports (which inevitably taxes exports), delayed justice, public sector units, not decentralising governance, random government interventions, discrimination based on caste, religion and group affiliations, and control of public wealth – these are just some of the facets of the anti-prosperity machine run by those in power. India’s politicians and bureaucrats have learnt nothing in the past 75 years from the successes of the nations that created wealth for their people; they have focused on wealth capture for themselves and their cronies.”

In another essay, I wrote: “India, colonised first by the British and then subjugated by its own leaders after Independence, remained poor. 75 years after the British left, the per capita income of Indians is only $2,000, a sixth of the world average. Indians have created wealth for themselves outside India (the household income of Indians in America is the highest among all ethnicities) but have not been allowed to do so in India…Even as the liberal world order faces challenges, India has this moment in time when it can rise…A free and rich India can be the real Vishwaguru. With the West caught in the aftermath of its own financial excesses, with Russia and China being led astray by authoritarian leaders, India has a unique opportunity in its 75th year to transform itself. India’s Amrit Kal can become true if Indians embrace the ideas of freedom – not just political independence, but real economic freedom for every Indian and in every action. This is the Nayi Disha India needs.”

More: “What India is missing is quality jobs paying Rs 40-50,000 a month with a promise of upward mobility as a reward for hard work. Today’s India seems stuck between the sub-Rs 20,000 job and the high-end job in IT and specialist functions paying upwards of Rs 100,000 a month. The chasm in the middle needs bridging… India needs to prioritise economic growth. It needs policies which free businesses, people and trade – and get the government out of business. With many countries and continents under economic duress, this is a unique moment in time for India to shed the baggage of the past and reverse policies that have kept people poor.”

I had written this about two-and-a-half years ago: “Swatantrata (independence) without Samriddhi (prosperity) is a battle not even half-won. We must not rest till every child, worker, entrepreneur has been truly liberated in our country. The good news is that it is possible – because India is rich, even as Indians have been kept poor. If enough of us come together, a peaceful political and economic transformation is possible – not in a generation, but before the next election. This Indian Revolution must begin in our minds. We must begin by replacing the dated romantic ideas of what creates prosperity with the evidence-backed reality of what actually does. Each of us must be a node in this networked spread of new ideas. We must set aside differences of caste, class and community that have been used to divide us. We must unite to set India in a new direction, to choose a different future. The only questions we must ask are – If not us, who? If not now, when?”

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Rajesh Jain

An Entrepreneur based in Mumbai, India.