In the last chapter, we have seen an overview of India’s political, economic, and social status after independence. The government-controlled most actions of citizens, including their wants and choices. Businesses did not boom because of the government’s involvement. Although the hunger crisis was resolved through the green revolution, the poverty level was rising due to low quality of life and income level and stagnated GDP. 1990 marked the beginning of liberalization, with the government’s withdrawal of control on markets and private entities taking over. 

From 1990 to present-day India, the policy framework followed is Neoliberalism inspired by the USA. The Indian market was open to foreign investors and received FDI (Foreign direct investment). This led to a massive boom in the IT sector in cities like Hyderabad, Bangalore, Chennai, Delhi, and Kolkata. We have been moving towards an interconnected and globalized world as a country. 

Our priority today is to eradicate poverty and achieve industrial growth. On the other hand, the middle-class population has been increasing continuously; 60 % of the population still relies on agriculture for a livelihood. The state’s control is out of the picture, and our wants have increased tremendously; we have a variety of choices. The GDP has increased, and the annual average is at the rate of 6-7%. However, this rapid growth did not result in employment. This era became an advantage to entrepreneurs due to tax reductions. Resultantly, startups flourished. 

According to experts, India’s primary achievement during this period was the poverty level reduction (which was true until the Covid-19 pandemic). However, these experts should have noted that the mere uplifting of people above the poverty line via a rise in the income level doesn’t address multiple other facets of poverty and these issues remain unattended. The neoliberal policy framework worked well to an extent, but it produced unprecedented problems such as: 

1) Income Inequality; according to the Time to Care Oxfam report released in 2020, 42.8 % of total national wealth is in the hands of the Top 1% of the population, and the bottom 50% only own 2.8% of total national wealth.

2) Increase of monopoly power of big private companies with the help of politicians due to crony capitalism. 

3) Violations of labour rights, unreasonably low wages, and punishing work hours.

4) Damage to the environment, the drain of natural resources, and climate change due to the irresponsibility of government and private companies.

This period saw a roadblock by the Global recession in 2008 (caused by the flaws of neoliberal policies practiced in the USA). Since then, this policy framework did not work well in any country; politicians and the media were all aware of this, yet the harsh truth and hard facts were masked with layers of false emotions to divide the country to attain votes during elections. This can be noticed in the United States and, unfortunately, very much in today’s India. After 12 years of the downfall of the neoliberal policy framework, we are still working around failed policies and accelerating towards privatization of everything. The wants and needs of only the top 1% are fulfilled, and the remaining 99%, i.e., the middle class and the poor, are still struggling to meet basic needs. According to the recently released CMIE May-August report, the unemployment rate in India is 7.43%, which stands highest among graduates at 17.4%. These figures are comparable to those before the Covid 19 pandemic because India’s economic crisis started in 2019.

The critical lesson to learn here is how a policy-making framework implemented by politicians is essential for the nation and community development. The current definition of development for our politicians is only GDP growth. The United Nations, in the year 1990, analysed and reported that GDP could not be an indicator of the quality of living in a country. Hence, the UN conceptualized the Human Development Index (HDI) to replace the GDP. The HDI  is designed based on people’s education level, income level, and health in a particular country. In 2022’s Human Development Index report, India stood at 132nd Rank out of 191 recognized countries by the UN. This strongly indicates that our country is in crisis due to the past 30 years of neoliberal policies.

In a democratic country like ours, people elect representatives to formulate policies for the welfare of the people. But our politicians are implementing policies & laws considering corporate interests and profits but not people’s needs. Any voice raised against policies not focused on citizens’ welfare is suppressed, threatening the constitutionally granted freedom of speech and freedom of expression. This resulted in declining India’s ranking from 27th in the democracy index in 2014 to 46th in 2021. To be known as the largest democracy in the world and be labeled as flawed democracy is truly painful; every Indian citizen should know that we live in a broken democracy today.

In the following chapter, we shall look at a framework that has always been in place but never implemented effectively. Simultaneously, let us learn about the rise of a new spirit to build grass root level democracy in India.