India's focus should be on growth, but in a manner that is responsible, compassionate and typical of inclusive capitalism
The Narendra Modi-led government that assumed power in May 2014 came in with a great deal of expectations. While it has done a few things well—built a positive image for India abroad, avoided any major case of corruption, and projected a pro-development image with campaigns like Make in India, Digital India and Start-up India—there has also been a gap between what was expected of it and what it has delivered.
The Indian economy growing faster than China is perhaps more a function of the Chinese economy slowing down. So we cannot really take comfort in what we have accomplished so far.
In this context, Budget 2016 will be a make or break budget for this government, as it comes close to a mid-point in its lifespan. People want to see results and economic growth is imperative to create jobs for millions of young Indians.
When a company announces its budget at the beginning of the financial year, it is within a strategic framework, keeping certain goals in mind. Similarly, before articulating what the finance minister should focus on in the Budget, it is essential to understand what India’s broader goals should be.
One goal is growth and the other is social justice. Often, a country is compelled to pursue one of these goals at the expense of the other. Since Independence, India’s focus has been more on social justice. While that may have been the need of the hour in 1947, absolute socialism hasn’t yielded good results in countries like the erstwhile Soviet Union. Also, in a country like India, with a population of 1.2 billion people, if the pie has to be divided equally among all, each person would receive a very small, meaningless share.
Should India then embrace growth as is manifested by the American form of capitalism, which expects the success of a few individuals to percolate or ‘trickle’ down to the lower strata of society? That may not work in India either since the characteristics of poverty in the US are radically different from those encountered in India. In the US, even the poor own cars, a house and have access to health care and education.
One solution for India could be to focus on responsible and compassionate growth, typical of inclusive capitalism. Where private enterprises are conceived and grow in size, scale and economic value while creating largescale employment for those who need it. Dr Devi Shetty’s Narayana Hrudayalaya is one such example.
Image: Mallikarjun Katkol for Forbes India
Indian economy should combine growth with social justice, a model followed by Dr Devi Shetty (in picture) with his Narayana Hrudayalaya
(This story appears in the 04 March, 2016 issue of Forbes India. To visit our Archives, click here.)