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LATEST NEWS UPDATES | Ending India’s Agrarian Nightmare -Rupa Subramanya

Ending India’s Agrarian Nightmare -Rupa Subramanya

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published Published on May 2, 2015   modified Modified on May 2, 2015
-ForeignPolicy.com

Roughly 600 million Indians are farmers -- the majority of whom would happily give it up for another job. So why is the Congress party so determined to keep them as peasants?

In 1991, the Congress-led government of Indian Prime Minister P.V. Narasimha Rao passed a series of groundbreaking reforms that unshackled the economy from its tight state controls, transforming it into a market-oriented, globalized giant. Those reforms unleashed India’s growth miracle and lifted millions of people out of poverty.

Today, India once again finds itself at a crossroads as its political left and right go to war over the country’s future. Hanging in the balance is the fate of its farmers and rural poor.

Although the reforms of 24 years ago liberalized the market for products and services, casting off the excesses of an industrial licensing system that required a government permit to do virtually anything associated with business or trade, they left untouched the markets for factors of production: land, labor, and capital. That led to a lopsided pattern of development that focused growth on high-tech industry and services and largely bypassed India’s large pool of unskilled labor, most of whose members were still working the land. After 10 years of a left-of-center, Congress-led government that consistently shelved reforms in favor of large entitlement-based welfare schemes, Prime Minister Narendra Modi’s right-of-center Bharatiya Janata Party (BJP)-led government is finally attempting them.

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ForeignPolicy.com, 30 April, 2015, https://foreignpolicy.com/2015/04/30/modi-economy-farmers-bjp-congress-party-agriculture-land-reform/


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