Almost a decade back I had explained PM Modi's economic doctrine (see link below). In a nutshell it could be described as providing a corruption free Mai-baap sarkar i.e. Corruption free socialism.
And it worked wonders for him - first in Gujarat and then at the national level.
Since winning a massive mandate in 2019, PM Modi has surprised supporters and opponents alike, by the general drift he has seemingly allowed to creep into India's economy.
His legendary political reflexes are conspicuous by their absence. One could argue that scrapping Articles 370 and 35A had the govt. preoccupied with a matter critical to India's safety and her future.
The one piece that has remained out of place in India's slumping economic story is Narendra Damodardas Modi. Having followed his every action in great detail, his calm, hands off approach seems baffling.
There are two conclusions to draw from India's economic drift (it's not a crisis yet).
1. PM Modi is out of touch with reality and India's slumping economy is a function of his lack luster leadership or
2. PM Modi is laying the ground work for a tectonic shift in India's economic landscape
I have no doubt it is the latter. Allow me to explain.
To establish a truly market driven economy, India must rid itself of the other side of dynasty driven politics i.e. Crony Capitalism (CC).
Dynastic politics and Crony capitalism are two sides of the same coin. One cannot survive without the other. Both feed off of each other and one cannot survive the other. Left untouched, CC has the potential to engineer a revival of dynasties in the future.
Consider the following lesson from history. Indira Gandhi was driven out by voters, her come back was largely due to the inept handling of governance by the Hodge podge alliance that replaced her. But what fueled her phoenix like rise was the support of India's foremost Crony Capitalist aka Dhirubhai Ambani.
Political Dynasties and CC work hand in hand. They have deep relationships. For instance, some very big Politicians not only gather funds from said CC but enjoy significant stakes in these businesses. There's a reason why Sharad Pawar cannot be touched. Through various benami fronts he holds significant stakes in top Indian companies.
To break this stranglehold, PM Modi is draining the very financial resources which sustain these CC entities. The timing (as always) is perfect. It may take 2-3 years for these entities to be weakened to a point where they can no longer prevent green shoots from emerging, green shoots i.e. new industrial power houses who play by the rules and do not subvert the system to create quasi monopolies, duopolies and oligopolies.
p.s. PM Modi has taken a similar strategy to destroy dynasties (https://inflextionpoint.blogspot.com/2014/07/how-namo-will-destroy-dynasties-without.html)
Mai Baap Sarkar aka Corruption Free Socialism https://inflextionpoint.blogspot.com/2011/06/understanding-indian-electorate.html
And it worked wonders for him - first in Gujarat and then at the national level.
Since winning a massive mandate in 2019, PM Modi has surprised supporters and opponents alike, by the general drift he has seemingly allowed to creep into India's economy.
His legendary political reflexes are conspicuous by their absence. One could argue that scrapping Articles 370 and 35A had the govt. preoccupied with a matter critical to India's safety and her future.
The one piece that has remained out of place in India's slumping economic story is Narendra Damodardas Modi. Having followed his every action in great detail, his calm, hands off approach seems baffling.
There are two conclusions to draw from India's economic drift (it's not a crisis yet).
1. PM Modi is out of touch with reality and India's slumping economy is a function of his lack luster leadership or
2. PM Modi is laying the ground work for a tectonic shift in India's economic landscape
I have no doubt it is the latter. Allow me to explain.
To establish a truly market driven economy, India must rid itself of the other side of dynasty driven politics i.e. Crony Capitalism (CC).
Dynastic politics and Crony capitalism are two sides of the same coin. One cannot survive without the other. Both feed off of each other and one cannot survive the other. Left untouched, CC has the potential to engineer a revival of dynasties in the future.
Consider the following lesson from history. Indira Gandhi was driven out by voters, her come back was largely due to the inept handling of governance by the Hodge podge alliance that replaced her. But what fueled her phoenix like rise was the support of India's foremost Crony Capitalist aka Dhirubhai Ambani.
Political Dynasties and CC work hand in hand. They have deep relationships. For instance, some very big Politicians not only gather funds from said CC but enjoy significant stakes in these businesses. There's a reason why Sharad Pawar cannot be touched. Through various benami fronts he holds significant stakes in top Indian companies.
To break this stranglehold, PM Modi is draining the very financial resources which sustain these CC entities. The timing (as always) is perfect. It may take 2-3 years for these entities to be weakened to a point where they can no longer prevent green shoots from emerging, green shoots i.e. new industrial power houses who play by the rules and do not subvert the system to create quasi monopolies, duopolies and oligopolies.
p.s. PM Modi has taken a similar strategy to destroy dynasties (https://inflextionpoint.blogspot.com/2014/07/how-namo-will-destroy-dynasties-without.html)
Mai Baap Sarkar aka Corruption Free Socialism https://inflextionpoint.blogspot.com/2011/06/understanding-indian-electorate.html
