Modinomics: Socialism or Capitalism? – The Week

By Dr. Samir Kagalkar

Socialists accuse him of Capitalism and Capitalists accuse him of Socialism! Prime Minister Narendra Modis welfare schemes on drinking water, electricity for all, banking for all, DBT, etc., have made the capitalists red eyed. At the same time, PMs pro-business efforts such as reduction in corporate taxes, support for start-ups, focus on FDI, ease of doing business have angered socialists! Where does the truth lie? Perhaps, the truth is sandwiched between Socialism and Capitalism!

The answer lies in BJPs economic philosophy. With Gandhian Socialism at its core, BJP stands for Antyodaya (development of most downtrodden). This is meant to be achieved through the Third way - as the senior ideologue Dattopant Thengde puts it by rejecting both Capitalism & Socialism in their pure forms. Capitalism promotes an individual at the cost of the society, while the opposite is true in the case of Socialism. A delicate balance between the individual, society, nature & divinity is being sought in the Ekatma Manavata Darshan (Integral Humanism) of the BJP.

How does one envision this Third Way in day-today economic policies? A vertical split between Capitalist vs Socialist policies is too nave and it does not provide convincing answers. But once you see this as a horizontal stack made up of two layers - welfare & empowerment - Prime Ministers Third Way becomes clear. The two stacks one above the other can be visualized assafety net layerat the bottom with focus on hands-on welfare and top layer asenabling zonewhere Government focusses on laissez faire policies with focus on maximizing outcomes through private sector.

Antyodaya philosophy mandates that the most backward person also should be ensured a life of dignity by the Government ( a life without wretchedness). The basics of a dignified life housing, clean water, electricity, access to quality healthcare, education, toilets, pension, insurance, farmer support, scholarships & gas connection to name a few of them have been taken up on a war footing by Modi Government. The speed & scale at which these have been completed is acknowledged as one of the most efficient ever done. Use of technology has aided in leakage proof delivery yet another feather in the cap of Modi Government.

With dignity of life assured even for the poorest of the poor (safety net zone via welfare schemes), the stage is set for the common man to explore his or her full potentionial. . It is here that the key features of PMs policy of laissez faire come into play. Repealing of obsolete laws & regulations, making access to credit easy (from a street vendor (Svanidhi) to the multi-billion corporates), ensuring a corruption free & transparent policy making, building massive infrastructure are some highlights which have put the Indian economy on the path of massive growth. Over 100 unicorns and around 75,000 startups are testimony to the fact that the second phase is rightly all about letting the potential of each person & entity reach its limit, incidentally furthering the cause of Indian prosperity.

As a society, the basic aim is a dignified life for all. And ensuring that it is States responsibility. And PM Modi believes that 130 Cr Indians with huge potential can contribute to Indias growth once basic facilities are ensured. And this growth in the spirit of 'Ekatma manavata darshan balances the individual, society & nature. And in this phase of new Atma Nirbhar Bharat, society supports everyone those below safety net, while those above the net contribute to Indias fast march towards economic prosperity. This truly is an Indian way going beyond the dichotomy of socialism & capitalism the Third way.

With Capitalism and Socialism in their pure forms at cross roads across the world, Indias Third Way may be the way forward.

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Modinomics: Socialism or Capitalism? - The Week

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