COALITION POLITICS AND INDIAN ECONOMY.

 By K P PASWAN.

 

India is the largest democracy of the world. The country is following the parliamentary system of democracy. President is ceremonial head of state and also the Commander in Chief of Indian army.Prime Minister belongs to the political party which commands majority in the lower house known as LokSabha. From 2014 on-wards there is only one political party, the ruling party (BJP)  commands majority in the lower house but for certain bills which are to be also passed by the upper chamber known as Rajyasabha. The ruling party does not enjoy majority in the upper chamber and has to depend upon others like minded parties for support.

After assassination of Indira Gandhi. India witnessed the emergence of coalition government. Political leaders of these small and regional parties were disgruntled politicians, they knew nothing about emerging economy. All the public sectors were falling sick and these coalition government made situation worse by funding these sick units, the result was Reserve Bank had to print more money and inflation crossed double figures. Credit goes to bureaucracy and the strong management of banking sectors that the country was saved from economic doom. Before 1999 there was talk of globalization of economy but common man was not concerned about opening of economy, they cared for their livelihood. In absence of large private sectors there was growing problems of unemployment among qualified technocrats. Growing population  was already causing concern and lack of basic health related infrastructures, led to malnutrition and starvation death.

With opening of Indian economy situation began to change, new groups of leaders were aware of extraordinary progress made by Japan, China and a few countries of Latin America. But MNCs were cautious enough to invest money unless they were convinced of political stability. Coalition Govt had no alternatives but to accept the new reality. 

Having said so we examine the economics  of the country. Unfortunately, in the past when coalition government was formed, Indian economy declined. During the period of a particular PM who was nominated by different coalitions parties India had to mogadge its reserved to  end the chaos in economy.One particular PM who is a leading economist and former Governor Of Reserve Bank Of India, mismanaged Indian economy as he had to sacrifice certain  economic principles as these were not liked by leftist partners. Coalition politics led to widespread scams, certain banks were used to launder money by vested interests and owing to conflicting opinions no penal actions were initiated at an early stage. The money launderers and Scoutmasters fled to foreign countries. India is fighting for their extradition.  

Despite of such hurdles under his guidance further economic reforms like de investment of sick manufacturing units were initiated. Under him Banking sectors witnessed extraordinary reforms but taking advantage of reforms in Banking sectors certain groups indulged indulged in banking frauds from which the country is yet to be recovered.

 India is a land of poor, agriculture is the mainstay of life and harvest depends upon good or bad Monsoon. Even when there was coalition government modern technology was imported to boost agriculture products. The result is that India has achieved self sufficiency in food grains.However after 2000 the world  witnessed growing disparity of economic growth between West and the rest of the world. There was coalition government at the centre and India fought with Pakistan known as Kargil war. But Indian economy was opened and foreign investment was seen in sectors like IT, Textiles Fertilizers and automobiles It was not coalition politics but economic compulsion that every constituent party supported economic reform

Economic growth under coalition politics increased purchasing power of common man and inflation was not allowed to cross double digits.  Introduction of MNREGA resulted in increased rural employment.The period also witnessed migration of unskilled labors from less developed areas to more advanced states. After 2015 there is a strong one party government at the centre but several states are under coalition or being ruled by a different government.  Maharashtra, Karnataka, two Telugu speaking states Tamilnadu Kerala are being ruled by different parties while  Hindi speaking states Chatisgarh Jharkhand and Rajsthan are being ruled by Congress with other political parties. But there is no apathy for economic reforms. States are fighting with centers on the basis of social justice, caste based discrimination.

Economic growth in the coalition also witnessed the modernization of Indian defense system New Jet fighters were purchased. An ultramodern aircraft career was purchased from Russia. 

KOVID and ECONOMY. For India it was a race against time before the outbreak of Kovid 19 Indian economy along with economy of a few nations like Japan. Brazil and Argentina were emerging as strong as Chinese economy. Indian economy started taking regular shape in coalition government and reached its zenith under the period of NarendraModi, who enjoys absolute majority in parliament. But pandemic has crippled the economy of entire world.

FINAL THOUGHT. Overall economic growth was  slowed down but did not face the economic doom in the era of coalition politics.