Modi must do a lot more for industry than just hailing ‘wealth creators’

It is not very often that Indian politicians say nice things about industrialists. Prime Minister Narendra Modi did precisely that this week. Addressing a CII-organised post-budget conference in Delhi, he hailed them as ‘wealth creators’. He said, “Our government doesn’t lack political will. I consider industry and the private sector a powerful force to make India a Viksit Bharat. For me, wealth creators like you are a crucial driving force of India’s growth story.” In many liberal democracies, such a statement would be regarded as platitudinous and a clichéd homily that politicians regularly come up with. In India, however, it is different; with almost half-a-century of socialism, the country has suffered a great deal because of this discredited ideology. Sadly, the suffering is not just economic. Quite apart from hurting economic growth and development and perpetuating poverty, socialism also severely infected the minds of the political and intellectual elite sections. Unsurprisingly, public discourse is still heavily burdened with the dogmas and shibboleths of socialism, communism and kindred ideologies.

The contemporary political context also makes Modi’s remarks more consequential. It is a well-known fact that the entire INDIA bloc, especially Leader of the Opposition Rahul Gandhi, has adopted an anti-reforms stance. They have been accusing the Modi government of being partial to chosen friendly industrialists. No one in India resists liberalization directly; the resistance comes in various garbs, like concern for the poor, ‘the marginalized,’ ‘the downtrodden,’ and so on. They talk about the bottom of the pyramid, equity, social justice, redistribution of wealth and rising inequalities, among others. These days, the anti-reforms people are worried about crony capitalism; their target is mostly liberalization. This is not to say that the opposition parties are committed to stalling reforms. We must not lose sight of the fact that it was the Congress that opened up the economy in 1991. Other parties too are keen to attract investment, both foreign and domestic, in the states they are in power. It needs to be recalled that Bharatiya Janata Party had vehemently opposed reformist measures when it was not in office; hypocrisy is not the prerogative of non-BJP parties. Against this backdrop, the Prime Minister’s remarks are quite reassuring; he has made it clear that he is not daunted by the accusations of ‘crony

capitalism.’

He would do better if he does a couple of things like ensuring that government functionaries take decisions in consultation with industry representatives in a transparent manner, lest lobbying by vested interests passes off as industry advocacy. It is not just the top business chambers like the CII and Ficci, whose counsel is heeded; smaller industry associations should also get a patient hearing. Wider and regular consultation with businesses will make industry-related policies more rational and predictable. Secondly, Modi must take the lead in bringing down the temperature in the political arena. Very high temperatures render political debate noxious, making any cooperation between the adversaries almost impossible. This becomes problematic in a federal polity in a diverse country. It is time to check toxicity in politics.