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Salvage operation which was
initiated, achieved far reaching success. The country was partitioned in two
nations, India and Pakistan, amidst intense communal hatred. Kashmir issue
became the permanent point of difference between India and Pakistan which has
since then remained a play ground for diplomatic manoeuvres by the world
imperialism. The colonial administrative system was skillfully thrust upon
independent India and the Indian constitution emerged as facsimile of
Government of India Act of 1935 in its core aspects. The compradore character
of the state got firmly implanted. Foreign aid (grants and loans) became the
kingpin of India's process of development. Income growth, accumulation and
import of technology were accorded priority in this process while employment
growth was relinquished to a back seat and the question of poverty
eradication remained in the realm of rhetoric. The forces making for erosion
of democratic and civil rights were maintained. The practice of detention
without trial, custodial death and fake encounters were kept intact. The state’s slogan of ‘self reliance’ proved to be ostentatious in no time. In spite of rigorous exercise of control over imports and release of foreign exchange, the imports, particularly from the nations of imperialism, grew at an ever increasing rate. This was caused mainly on account of arms race and ever increasing import of petrol and petroleum products, machinery, equipments, spare parts and other intermediate capital goods12. Since these could not be paid by exports13, the country faced the problem of ever increasing foreign debt. As on March ending 1948, Britain owed India Rs 16120 million. But by March 31, 1991, India owed the foreign countries (or India's foreign debt stood at) Rs 1630010 million. Foreign trade deficit14 and foreign debts servicing in 1990-91 amounted to Rs 106450 million and Rs 143370 million respectively. India's foreign currency reserve was equivalent to Rs 114160 million which was highly inadequate to meet the foreign currency obligations arising out of foreign trade deficit and foreign debt servicing, India was unable to obtain loan from international money market on account of its low credit rating. India, thus, was forced to negotiate loans from International Monetary Fund and World Bank in 1991 on very harsh conditions Whereby foreign exchange control and import restrictions were progressively done away with. The basic approach was to allow the global markets in capital and commodities but not in |
labour to be eventually made free from restrictions.
This was the beginning of the phase of globalisation or the phase of
Liberalisation or the phase of New Economic Policy in India. Dynamics of this
dependence paradigm forced India to sign a treaty with World Trade
Organisation whereby Indian markets were also opened to Intellectual Property
and Services. India, thus, becomes subservient to imperialism in matters of
its core economic policies. This is what Globalisation is all about. The
cirsis in Indian economy continued to aggravate unabated. The forces making
for the dependence paradigm gathered additional momentum. The foreign trade
deficit had gone up to Rs 607510 million by 1997-98 and foreign indebtdness
increased to Rs 3735110 million by March 31, 1998. There is evidence of
inflow of foreign investment in India. But it is not much. Moreover, it has
declined after Globalisation. On the other hand outflow of factor income (in
the form of mainly interests and profits) has been increasing at a faster
rate than inflow of foreign investment particularly after Globalisation. In
the phase of Globalisation both, the outflows and inflows, are almost equal.
Though foreign investment has not been much, its association with domestic
capital has disastrous impact on employment in the organised sector, more so,
during the phase of Globalisation. It is worth noting that during the past
five decades, the annual average rate of growth of labour force has been
about 2.5 percent. Of late, India has entered into a phase of trade and
industrial depression resulting in widespread retrenchment of working men and
women. Thus, the ever increasing unemployment and concomitant poverty has
been promoting, at an increasing rate, depraved activities and violence. The
victims involved in detention without trial, custodial deaths and in fake
encounters has been on an increase, because the present Indian administration
treats such depraved activities and violence merely as a 'law and order'
problem. India can opt out of this anarchic situation provided a mass based democratic struggle is launched demanding that the civil administration is completely transferred to the ward and village |