A lot of people think that India is capitalist. Unfortunately, that is wishful and delusional thinking. The reality is that India continues to be a deeply socialist country at all levels.
Let’s start with the dictionary definition of socialism: “a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.”
Basically, socialism involves confiscation of private property. And the desire to ensure economic equality among all.
DOES INDIA FULFIL THESE REQUIREMENTS?
- The 42nd amendment to the Constitution added the word ‘socialist’ to the Preamble.
- The Representation of People Act forces all political parties to swear allegiance to socialism. No political party that doesn’t swear to be a socialist party is allowed to be registered in India. (Despite that, Swarna Bharat Party - a party devoted to liberty and capitalism has registered, with intention of abolishing socialism from India’s Constitution and laws).
- Property rights were drastically curtailed in India starting from the first Constitutional amendment, till finally, property is no longer a fundamental right.
- A vast number of seizures of property (e.g. ceiling of land laws) remain sheltered in the Ninth Schedule of the Indian Constitution, away from judicial scrutiny.
- Banks were nationalised and to a large extent remain so. A vast number of private undertakings were nationalised and remain so. The Government still runs hundreds of public sector undertakings, including hotels and airlines. Almost all of them on a loss.
- The government dramatically reduced the difference in salary between the lowest and upper most rungs of government, so that the upper most rungs are completely divorced from market rates, leading to massive incentives for corruption
- The government pays MPs and MLAs very poorly, driven by the socialist goals.
- Incentive structures for the bureaucracy are entirely socialist, with everyone paid almost an equal amount, regardless of responsibility. This has been clearly articulated by the Pay Commissions. What this does is to destroy the possibility of getting good people into government, and also ensures that most of those who join government are deeply corrupt.
- Prices of key products and commodities are administered even where there is absolutely no chance of monopolistic behaviour.
- Foreign investment and trade is blocked in a number of sectors, and trade is not permitted in many sectors within the country, e.g. in agriculture.
- The currency is controlled by a socialist apparatus and is not convertible.
- Centralised planning continues – even though it has now slightly reduced.
Yes, India has liberalised a little bit, but remains one of the least free countries in the world, and one of the worst to do business.
India is therefore a socialist country. ONLY Swarna Bharat Party can make it free.
Also see these notes in Hindi: https://bit.ly/2J5EuES