Daily Editorial analysis:-
GS3: Indian Economy
CONTEXT: Recently, Bharat Ratna is awarded to P.V Narasimha Rao, former Prime Minister of India, who held the seat form 1991 to 1996. His policies during early 1990s has led to conferring of Bharat Ratna award now.
Success of India, currently, in terms of achieving status of fastest growing economy and huge welfare state has its roots in the policies led by P.V. Narasimha Rao.
Welfare policies
- P.V. Narasimha Rao government played a greater role in implementing OBC Quotas and implementation of Mandal report.
- Government fought in Indra Swahaney case to implement the OBC quota.
- Laid foundation for the quota for Economically Weaker Section apart form all castes. Recently, in the tenure of the Modi government it was implemented.
- Laid foundation for women reservation in parliament.
Economy
Liberalization, privatization and globalization:
- Opened Indian markets for the world.
- India is clinching records in FDI and FIIs.
- Created competitive environment and efficiency in resource usage in India.
- Government started relying on society rather than on the state. Increased hope on private players in lifting the economy.
- Private investments in overall capital expenditure is increasing.
- Minimum government and maximum governance. Reduced the legal hurdles, complex rules and government intervention.
- India is performing better in Ease Of Doing Business and global innovation index.
Market led welfarism
Pre-2000 era witnessed massive welfare schemes like Garibi Hatao, Desh Bachao, however, budgets were inadequate to fund these schemes.
Thus, P.V Narasimha Rao’s policies on economy led to increased capital and savings accumulation in India. As a result now India is highly fi ending for welfare measures.
