In Conclusion: Revisiting the Past, Looking to the Future

Abstract

This chapter looks back at post-independence economic history to understand the stranglehold that socialism acquired on the Indian economy in the early years, the launch of reforms in 1991 under Prime Ministers Narasimha Rao and Atal Bihari Vajpayee, partial reversals under Prime Minister Manmohan Singh, and a return to reforms under Prime Minister Narendra Modi. It particularly emphasizes the role that a socialistically inclined bureaucracy plays in continuing to hold back reforms. The chapter concludes by making the case that despite a slowdown in growth at the present time, India’s future is bright—but only if the leadership stays the course on economic reforms. The chapter concludes with a number of cautionary notes relating to policy. These relate to policy stability, the necessity of migrating half or more of the agricultural workforce to industry and services, creating an ecosystem that would help firms to grow larger, the centrality of success in export markets, and the need for investment in labor-intensive sectors of the economy.