indiaunbound summary
TRANSCRIPT
WHAT OTHERS SAY
• “A ringside view of the economic and social transformation of a nation…..”
• “One of the most readable and insightful books to appear on India’s torturous economic path”
• “Describes India’s economic policies analytically, logically and vividly.”
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CONTENTS IN THE BOOK
Part One: Our Spring of Hope ( 1942-
1965)Part Two:The Lost Generations ( 1966-
1991)Part Three: The Rebirth of Dreams ( 1991-1999)
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INDIAN GLORY
• RICH INDIA • Columbus went in quest of
riches in India and discovered America
• India’s wealth lured all• Golconda was famous for
its diamonds• Vasco Da Gama was sent to
find India• English came much later
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INDIAN GLORY
• India was well developed in comparison with Western economies
• Annual revenues of Aurangzeb were ten times that of his contemporary Louis XIV
• Accumulated a wealth of more than a one and half billion dollars
• Spent this money on development of monuments like Taj Mahal
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INDIAN GLORY
• India produced world’s best cotton yarn and textiles
• Exports were half of the output• Controlled a quarter of the
world’s textile trade• Changed dressing habits of
Europeans and replaced woolen clothes
• More than a fifth of the world’s wealth
• Well developed banking systems• Bills of exchange were honoured
throughout Asia
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BRITISH RULE IN INDIA
• Britain taxed the Indian farmer heavily
• Transferred surplus back home to finance its own deficit
• 8% of GNP was transferred to Britain every year
• Financed Industrial revolution back home
• In 1830, share of Industrial production was 17.6 % which declined to 1.7% by 1900
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WAS BRITISH RULE THE ONLY PROBLEM?
• Industrial revolution destroyed Indian textile industry
• Indian industrialists were not allowed to set up modern mills
• Indian social system also contributed to its problems
• Indian superstitions, beliefs, indiscipline contributed equally
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THE GREAT PARADOX
By 1914,
• India had the largest jute manufacturing factory•Fourth largest cotton textile industry•Largest canal network•Third largest railway network•2.5% of the world trade
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CASTE AWAY
• CASTE• Four main layers in Indian
system• Traditionally not accorded
a high place to the making of money
• System created inability to non cooperate
• The “Brahmanical” advantage
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FREE INDIA
• Inspired by communist Russia than capitalist America
• Influence of socialism• Did not trust private
entrepreneurs• Decided to create the state
as a business house• Experienced an agricultural
revolution
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Choosing the wrong path
• The six wrongs1. Adopted an Import
substituting path2. Set up inefficient PSUs3. Overregulated the private
enterprise4. Discouraged foreign capital5. Pampered organized labour6. Ignored education
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THE EFFECTS
• In 1960, our per capita income was more than China, now it is half
• Half Indians are poor by international standards
• Four out of Ten Indians are illiterate
• India is ranked 134th out of 174 on the UN Development Program’s Human Development Index
• Our failure came less from ideology and more from poor management
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MEN BEHIND WHEELS
• THE GOLDEN SUMMER OF 1991
• Economic revolution• Dismantled license raj• Free import controls• Opened country to foreign
investment• Privatised banking, airlines,
power, petroleum, telecom, postal sectors
• Tax rates came down• Set up Foreign Investment
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NEW MONEY
• INFOSYS• Started by 6 engineers with
Rs.10,000 • More than $ 15 billion today• ZEE GROUP• Started by Subhash Chandra,
a grain Trader from Haryana• Pioneered laminated tubes• Entertainment business with
Esselworld• Entered Cable business first
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NEW MONEY
• ARMEDIA• Started by engineer
working with Intel• Started own firm in
Bangalore• In two years, sold to
Broadcom for more than Rs.300 cr
• RAMESH CHAUHAN• Sold Thums Up to Coke for
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OLD MONEY
• Owned and managed by a family as a joint family
• “Haveli ki umar saath saal”• The story of Buddenbrooks• Professionally managed
companies respond better to challenges and decision making
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• Our great strength is our people, weakness is government and hope is internet
• Our rich country became poor and would become rich again
• We are powered by an “ICE” age
• We missed the industrial revolution but have caught the information revolution
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A NEW COUNTRY
A NEW COUNTRY
• Unleash human capital through education
• Creation of middle class means success for India
• New India is on competition and decentralisation
• Majority of Indians in the 21st century would be freer and prosperous than their parents and grandparents
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A NEW COUNTRY
• “India is an elephant and has begun to lumber and move ahead. It will never have speed but will always have stamina. The elephant is the wisest of animals/the only one who remembers his former lives and remains motionless of time meditating. India will have a more stable, peaceful and negotiated transition than, say, China”
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Book review Based on “India Unbound” by
Gurcharan Das THANK YOU!
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