India's Challenge

Imagining post-election India
ND Batra
From The Statesman

India’s elections might seem a trivia pursuit to some observers in the West — just an exercise in ritualistic vote casting by 714 million voters driven by narrow considerations of caste and creed or, maybe, monetary benefits. It is true that most political parties, especially at the regional level, are not motivated by any big ideas or ideological agendas except to jockey for a piece of the pie when the post-election government formation begins to take shape. Neither of the two major national parties, the ruling Congress and the BJP, however, can be accused of having no ideology or lacking a political and economic platform; nevertheless, it is most unlikely that either of them would have a dominant position in Parliament after the election.

Localism and regionalism have been dominating Indian politics for several years and there is nothing particularly wrong with this state of affairs. National parties must reflect and accommodate regional needs and aspirations so that no one is left behind; but they cannot do so if they cast themselves up in ideological straitjackets. Even if a great national leader like Jawaharlal Nehru rises again, India would remain a country divided against itself, which would not necessarily be a disaster. In fact these divisions create opportunities for greater economic and political freedom; and experimentation. You can see the cultural differentiation between West Bengal and Gujarat. That is the beauty of the federal system. You can see how India’s culture of differentiation and the abiding spirit of free enterprise (the Gujarati-Marwari spirit) have been gradually transforming the country into a dynamic economy. In spite of the global slowdown, the economy is still likely to grow 6.5 per cent for the year ending March 2009 and according to Reserve Bank governor Duvvuri Subbarao, “India will be one of the countries that will recover fast.” About a decade ago, India reached the tipping point when economic growth became irreversible, regardless of who would govern the country.

After the post-election realignment of political forces when the new government takes office on 2 June, disciplined liberalisation of the economy ushered in by the Manmohan Singh government would continue. The need for steady economic growth and the role of the marketplace have begun to dominate thinking, which would subsume as well as transcend everything else including local and religious interests. More and more Indians have come to accept the view that the way to prosperity is through well-regulated banking and financial system, free marketplace economy and bold entrepreneurship.

An entrepreneur seeks innovations, builds networks and breaks barriers, and in the process he enriches society as you can see it happening in India’s burgeoning health industry that has begun to draw global attention. In spite of Satyam and the global slowdown, India continues to excite the world’s imagination and investors keep exploring its possibilities. For many global investors India offers another avenue of growth and diversification where they can put their resources to alternative productive uses. Tata, Reliance, Infosys, Tech Mahindra and Wipro are not the only companies for which India has become famous. There is also the growing field of auto industry, biotechnology, petrochemicals and pharmaceuticals, where Indian companies have built international brand names. The global buzz that India is full of talented young people who can perform competitively in knowledge economy continues undiminished. Knowledge economy depends upon extracting and creating new knowledge from existing knowledge databases.

Although India is far from becoming a full-fledged knowledge economy, this is the trend. Other developing fields such as genetic engineering and high-tech healthcare will hasten the transformation of India in the next decades. But much more needs to be done to “go back to nine per cent... we need the world to recover fully. Private investment demand has to pick up”, said Mr Subbarao. One of the biggest hurdles for rapid economic growth in India is the red tape, which takes myriad forms such as expectations of under the table money; fear of the loss of bureaucratic power due to privatisation; and the fear of foreign direct investment.

The primary goal of rapid economic growth and its ultimate measure is poverty reduction by generating opportunities for employment, especially for the rural people, who mostly depend upon agriculture. Even today rural India is being held hostage to nature’s uncertainties.Technology can break nature’s stranglehold on poor farmers, many of whom have committed suicide. Most rural workers need to be absorbed into agro-industry, manufacturing and service industries; and that again will necessitate massive investment in building rural and urban infrastructure and upgrading the existing one.

Rising expectations at home and abroad would create compelling conditions for the new government, regardless of its ideology, to put its act together and become pro-active in anticipating crisis and solving problems. India has become an integral part of the globalised economy and the country has flourished on the synergy between multinational corporations and the ingenuity of its people for innovative solutions to complex problems. Ingenuity means transcending a system’s limitations by finding an alternative route to reach the same goal. When a creative and ingenious mind hits a block, he gets energised to find another way and improvise by transferring intelligence from one application to another.

The challenge is whether India’s ingenuity can be tapped to undertake collective action to build reliable highways, ports, railroads, power plants and airports speedily enough to handle future growth. Corruption is a serious problem in every society but more so in India. The source of corruption is the unchecked exercise of power. Elected officials can be removed, though one might say cynically, only to be replaced by another bunch of hoodlums. But democracies do have methods of dealing with corrupt people in high places.

Public accountability through the media, including television disclosures as well as social networks and blogs, is the key to fighting the menace. If laws are enforced rigorously, the corrupt will find their rightful place in jail. War against corruption and poverty will never come to an end but the media can play a great role in fighting the scourge through courageous reporting. It is the moral responsibility of leaders to create conditions that encourage risk-taking and reward entrepreneurship. It is only through free spirited and full-blooded entrepreneurship that the post-election India can meet the challenge of national, local and regional aspirations.

(ND Batra is Professor of Communications at Norwich University. He is taking time off from the weekly column “Cyber Age,” which he has been doing since 1995, to complete a book about the American spirit of ingenuity and innovation. He will be back with a new column of ideas soon after the book is done.)