Saturday, May 07, 2011

Economic Reforms In India

My friend Ashutosh Tiwari posted an article of his on his Facebook wall. It was first published in the Nepali Times.

Guru Of Business: Ashutosh Tiwari
During the 'licence raj' in the 70s and the 80s, while India was posting its so-called 'Hindu rate of economic growth' of around 3.5 percent a year, Bollywood portrayed industrialists as villains. These were rich men who lived in palatial buildings, befriended politicians for licenses and permits, smuggled goods, evaded taxes, and exploited labourers....... Since the mid-90s, however, with India's annual economic growth averaging about seven percent, Bollywood has churned out decidedly pro-capitalist movies. The bad industrialists are gone. So too are the pitiable poor who tug at the heartstrings of socialists everywhere. It's not labour and factories that make up the plots of today's movies. Instead, they are about the intra-family relationships of wealthy multi-generational clans with roots in India and branches elsewhere.
The current Prime Minister of India started economic reforms in the country in 1991 when he was Finance Minister. Thanks to those reforms India has seen almost China like growth rates for almost a decade now.

The word Guru in Ashu's article comes from the famous Hindi movie by the same name. It is based on the rags to riches story of India's most celebrated entrepreneur.

Dhirubhai Ambani - Wikipedia, the free encyclopedia Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmedabad. Dhirubhai founded Reliance Industries in 1958 and today the company, with over 85,000 employees, provides almost 5% of the Central Government's total tax revenue.

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