The Gujarat Model of Development: What Would It Do To The Indian Economy?

 

The cornerstone of Narendra Modi’s and the Bharatiya Janata Party’s campaign for the 2014 Lok Sabha elections is that the United Progressive Alliance (UPA) has ruined the Indian economy and the BJP led by Modi will make it boom. These claims have been reinforced by corporate adulation for Modi in his ‘Vibrant Gujarat’ summits (Times News Network: 2013) and surveys showing that almost 75% of top corporate CEOs want him to be the PM (NDTV Profit: 2013). How valid are these claims?

India’s economic performance since the 1990s

The economic reforms initiated by the Congress government in the 1990s raised the Gross Domestic Product growth rate from an average of around 3.5% per annum since independence to more than 9% between 2005-06 and 2007-08 (Planning Commission: 2011), before dropping to 6.7% in 2008–2009 as a result of the global financial crisis (Government of India: 2010). Global competition forced manufacturers of products like electrical and electronic goods to improve the quality and reduce the price of their products. Computers, internet access and mobile phones became much more widely available. 

However, neoliberal policies that were part of the changes had serious negative consequences. Privatisation was in many cases accompanied by massive corruption (e.g. the Commonwealth Games and 2G scams), as politicians and bureaucrats received kickbacks from the corporations they favoured. In other cases, even if there were no kickbacks, lack of adequate regulation allowed corporations to make windfall profits, while public sector banks offered them generous loans without exercising due diligence. The campaign by industrialists for the abolition of protective labour laws reached a crescendo during the National Democratic Alliance (NDA) regime. It stopped when the UPA came to power, but the anti-labour atmosphere had already influenced state labour departments and even the judiciary to such a degree that workers struggling for their rights were seldom successful. 

The Case for Banning the VHP, Bajrang Dal and RSS

In the context of the prolonged and horrific violence in Gujarat, there have been numerous calls for the VHP and Bajrang Dal to be banned. For some people, evidently, the well-documented role of these organisations in planning, inciting and perpetrating systematic attacks on Muslims – destroying their livelihoods, driving them out of their homes, raping hundreds of women and girls, and murdering thousands of men, women, children and babies – seems an obvious reason for outlawing them.

Others, however, disagree. Even if we leave aside members and supporters of the VHP and Bajrang Dal, there are objections which can be summarised as follows: (1) Bans are undemocratic. (2) Who will ban them? Not this government! (3) It won’t work – they will go underground, or change their names. (4) Endorsing the use of a ban against them will make it easier for the government to ban organisations and harass individuals engaged in legitimate activities.