It has gone virtually unrecognised that the goal of economic self-sufficiency single handedly held the Indian economy back for nearly four decades. All else, including the licence permit raj, small scale industries (SSI) reservation and heavy presence of the public sector was either a by-product of this goal or sideshow.

PM Nehru viewed economic self-sufficiency as necessary for the preservation of political freedom. He held that depending on imports for railways, airplanes and guns amounted to being slaves of foreign countries. “Whenever these countries wished they could stop sending these things … we would thus remain slaves.”

Chad Crowe

Unfortunately, there was an inherent conflict between such self-sufficiency and productive efficiency. In 1950s India, both income and

Read More At Article Source | Article Attribution