Page 14 - EW August 2025
P. 14

Editorial



         NEGOTIATE BORDERS ON CLEAN SLATE                                  ery, among others, to initiate de novo
                                                                           negotiations with PRC, to settle once
                                                                           and for all the Sino-India boundar-
              he call for a new beginning and   dent Donald Trump is upending the   ies demarcation issue that has been
              nomalisation of ties between In-  multilateral trade order established   hanging fire for over half a century.
         Tdia and the People’s Republic of   by the US which after World War II   For this to happen, there has to be ac-
         China (PRC) made by Union External   ushered in an era of unprecedented   ceptance within the Indian establish-
         Affairs Minister S. Jaishankar at the   global prosperity. Since he assumed   ment that Sino-India border lines in
         Shanghai Cooperation Organisation’s   office last year, President Trump has   Aksai Chin in the north-west and in
         foreign ministers meeting in mid-Ju-  declared a tariffs war against several   the north-east were arbitrarily drawn
         ly, is a welcome development. After   countries to balance bilateral trade   and imposed in the pre-independence
         meeting with his counterpart Wang   surpluses. This wonky economics   era by the British who it is well-estab-
         Yi, Vice President Hang Zheng and   could well disrupt the economies of a   lished,  had a reputation for drawing
         President Xi Ping, Jaishankar called   large number of countries, including   arbitrary border lines during the age
         for open dialogue amid the current   PRC and India, which export a wide   when they ruled over half the world.
         complex geopolitical situation and   range of goods and services to the US,   Therefore to insist that inherited Sino-
         expressed  confidence  in  sustaining   the world’s wealthiest nation (GDP   Indian border lines drawn by imperi-
         improved bilateral ties. The fact that   $30.5 trillion).         ous grandees of the British raj in India
         during  his  first  visit  to  PRC  in  five   Simultaneously,  the  newly  emer-  are written in stone, has an element of
         years, he not only met his counterpart,   gent globalised world is experienc-  irrationality.
         but also the top Chinese leadership,   ing  major  armed  conflicts  —  the   In the circumstances, this is an op-
         indicates PRC’s seriousness about set-  40-month Russia-Ukraine war, the   portune  moment for the BJP/NDA
         ting the stage for a new beginning of   Israel-Hamas  conflict  in  Gaza  and   government at the Centre to evolve
         the Sino-India relationship which has   an uneasy ceasefire after the 12-day   an all-party consensus to reopen the
         been adversarial since the border war   Israel-Iran slugfest.     Sino-India border issue which has
         of 1962, and most recently the Galwan   Therefore, this is an opportune mo-  unwarrantedly poisoned relations
         lake clash of May 2020.          ment for India which is heavily depen-  between Asia’s two most populous
           This first sign of a thaw in Sino-  dent upon imports from China for a   — and potentially most prosperous
         India ties comes at a time of volatile   wide range of industries — chemicals,   — nations and begin negotiations on
         global conditions. In the US, Presi-  automobiles, electronics and machin-  a clean slate.



         TIME TO JETTISON NEHRUVIAN SOCIALISM                              the Indian economy in 1991, the an-
                                                                             Although after liberalisation of
                                                                           nual rate of economic growth (GDP)
              he consequences of imposition of   of micro-managing the entire econo-  has doubled because of private sector
              Nehruvian neta-babu socialism   my and society devolved upon the 15-  growth momentum, the brotherhood
         Ton newly independent India 78   20 million neta-babu (politician-bu-  is unwilling to let go. Privatisation of
         years ago, regardless of the subcon-  reaucrat) brotherhood of the Central   PSEs is slow and private industry and
         tinent’s several millennia of private   and state governments. Seventy-eight   business continue to be governed by
         enterprise culture and traditions, are   years on, it’s clear this task which in-  1,536 Central and state government
         becoming increasingly evident. For   cluded suppression of private industry   laws, 69,223 compliances and 6,618
         half a century economic growth barely   and business, has proved too much for   filings  which  has  prevented  double
         averaged 3.5  percent per year (against   the brotherhood. Spread too thin and   digit annual economic growth neces-
         the global average of 5 percent) while   too wide, the brotherhood has failed   sary to recover ground lost in the so-
         annual population growth averaged   on every front.               cialist years. The brotherhood is fight-
         2.5 percent.                       Perhaps not foreseen by Nehru and   ing  a  determined  rearguard  action
           Against this dismal development   his heirs who persisted with the rigor-  against liberalisation because control
         record, neighbouring China which was   ous  neta-babu licence-permit-quota   and command guarantees perennial
         economically more backward than In-  regimen until  a non-Nehru  (Prime   streams of speed money and permis-
         dia in 1949 but which took the capital-  Minister Narasimha Rao) substan-  sions income.
         ist road in 1978, has attained a GDP of   tially liberalised and deregulated the   The only available solution is sus-
         $18 trillion cf. India’s $4 trillion.   Indian economy in 1991, half a cen-  tained pressure of public opinion to
           Under the inorganic socialism   tury of neta-babu raj over industry,   reignite the faltering momentum of
         model formally adopted in 1956 and   and micro-management of the social   liberalisation of the Indian economy
         reiterated in 1976 when ‘socialist’ was   sector through discretionary laws   to transform 21st century India into
         inserted into the preamble of the Con-  and regulations has infected the body   a free enterprise, free markets nation.
         stitution, it was holy writ that the State   politic with pervasive corruption.     The accelerating failure of national
         and public sector enterprises (PSEs)   Consequently, the brotherhood has   infrastructure and social sectors is
         dominate the “commanding heights of   morphed into a powerful vested inter-  the outcome of stalling momentum of
         the economy”. Consequently, the task   est within Indian society.   liberalisation and deregulation.

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