Are we returning to Indira Gandhi's India?

"A day after Moody's downgraded India's credit rating to a notch above junk status on growth concerns, Prime Minister Narendra Modi on Tuesday asserted that the country will definitely get back its economic growth and said reforms undertaken during the lockdown will help the economy in the long run." He said growth will come through self-reliance. Self-reliant India is about cutting down imports, improving productivity, setting targets, and not relying on others in strategic sectors." The government has introduced a policy of import substitution already by increasing customs duty on imports in successive budgets. Many nations started with import substitution to protect domestic industries but moved away from it as they got richer. This was what Indira Gandhi tried in 1980-84 when she came out with the slogan of "Utpadan badhao", which means 'increase production', somewhat similar to Modi's "atmanirbhar", which means 'self-reliance'. "It helps that the embrace of the homegrown carries a long pedigree in Indian politics," wrote Sadanand Dhume. "For the average Indian, the self-reliant decades before liberalisation were synonymous with shoddy products made by businesses whose success depended more on access to government than on providing better goods and services to customers." In an open letter to Modi, Ajay Chhibber wrote, "The slogan of self-reliance, sir, sounds good and we have heard before. But if we lift the drawbridge and retreat into Fortress India, it will ensure low growth and no jobs for millions for years to come." "Beyond their varying epidemiological effectiveness, lockdowns have been economically devastating," wrote Prof Ricardo Hausmann. "Emerging and developing economies around the world will shrink by 20-40% in the second quarter, with double-digit contractions for the year." "First, they need money just to fund huge collapses in tax revenues caused by a shrinking economy. In addition, they will be asked to help hospitals, households and firms, just as in advanced countries." Fuel prices are set to rise in India by Rs 5 per liter. Why, when crude oil is still below $40 a barrel? Because, taxes now make up over 70% of retail prices of fuel. "Travel and tourism will not recover at least until a vaccine is available." Price of jet fuel has been increased by 48%. "Now a kilo liter (kl) of aviation turbine fuel (ATF) will cost Rs 33,575, up by Rs 11,000 from last month. We need freedom of individuals, of institutions and of states in India, and reform of political parties and financing of elections, wrote Chanakya. "While personal freedom is the cornerstone of fundamental rights, this is under jeopardy. The executive, through a range of draconian laws, has succeeded in curbing the extent of liberty." Political reforms are never going to happen. Self-reliance means more control. Are we going back to Emergency? Possible.