Among developing countries, India’s growth experience during the past five
decades has been unique. Unlike many of its East and Southeast Asian neighbors, India
did not grow at the “miracle” rates that exceeded 6 percent and reached as high as 10
percent. At the same time, unlike Africa and Latin America, it did not suffer periods of
prolonged stagnation or decline. For three of the five decades (1950-80), India steadily
grew at the so-called “Hindu” rate of three and a half percent. During the remaining two
decades, it grew at rates between 5 and 6 percent.
"Twenty years ago tonight, three top Indian officials burned the midnight oil tearing up old import controls and preparing a package of economic reforms that would slowly lead to the booming India that is widely admired today, with growth of 8-9%, 300-350m people enjoying the benefits of a consumer economy, a strong rupee, and businessmen operating internationally."
John Elliot
But today, India lies seriously in need of economic reforms. Corruption seems to be creeping into the much venerated pvt. sector of India, and it seems that while India could cope with the recent meltdown, it is struggling with its after-effects, which is surprising, seeing that man at the helm of affairs today is a noted economist.
India's burgeoning middle class seems to have dropped into a stupor, and this once driving force behind India's growth seems to be bereft of ideas. We are all dropping into a cycle, where every man has only the government to blame. It seems as if we have reached a state of perpetual disenchantment with the 'system', and, if truth be told, the political establishment does not have any new face or idea to inspire confidence in us. The Nehru-Gandhi family seems to eclipse even the Prime minister's stature in India.
It is an irony that, though the past 20 years began and now end with Manmohan Singh, he was neither in charge at the beginning, nor is he at the end. That is not a criticism, but in the early 1990s he could only do what he did courtesy of Narasimha Rao, and now he cannot do what he doesn’t do courtesy of Sonia Gandhi and the UPA’s coalition partners. Something surely needs to change.
