Analysis of The Indian Express Editorial – December 06, 2024

Analysis of The Indian Express Editorial 1 : The State Strikes Back

Context

India’s ambition to achieve Viksit Bharat by 2047 faces hurdles like policy uncertainty, high taxation, and bureaucratic inertia rooted in Nehruvian socialism, necessitating structural reforms for sustainable growth.

Introduction:

India’s GDP growth has slowed to 5.4% in the second quarter of 2024-25, falling short of the 7% target. This slowdown raises questions about whether India is truly on track to achieve the ambitious goal of becoming Viksit Bharat (Developed India) by 2047. The long-term target requires consistent economic growth, efficient policies, and a globalized outlook.

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However, a mix of policy hurdles, high taxation, and remnants of Nehruvian socialism continue to impede progress. This article explores the challenges, contrasts historical ideologies, and offers actionable solutions to steer India toward sustainable development.

Growth Drivers and Challenges: Unpacking the Slowdown

1. Tight Monetary Policies and Their Ripple Effect

India’s central bank has pursued a stringent monetary policy over the last two years to curb inflation. While effective in controlling price volatility, this approach has slowed economic growth beyond expectations. High real interest rates discourage borrowing and investments, reducing overall market activity.

To balance inflation control with economic growth, India needs monetary policies that reflect both current realities and long-term growth aspirations.

2. High Taxation: A Competitive Handicap

India’s tax-to-GDP ratio stands at 19%, which is higher than East Asia’s average of 17%. While high taxation boosts government revenues, it also creates a significant barrier to economic competitiveness. Businesses face inefficient tariffs, heavy compliance burdens, and reduced profit margins, making India less attractive to investors.

Streamlining tax policies, rationalizing GST rates, and adopting globally competitive tax structures could alleviate these concerns.

3. Declining Foreign Direct Investment (FDI)

Foreign investment, a crucial driver of economic growth, has faced headwinds in recent years. India’s withdrawal from Bilateral Investment Treaties (BITs) has diminished investor confidence. The lack of enforceable contracts, unpredictable judicial decisions, and an inconsistent regulatory framework further exacerbate the problem.

If India hopes to attract and retain foreign investors, it must rebuild trust through predictable policies and robust legal frameworks.

4. Retrospective Taxation and Regulatory Uncertainty

The infamous retrospective tax measures, such as the removal of indexation benefits, have created an air of unpredictability in India’s economic landscape. Frequent policy reversals and the government’s command-and-control tendencies have further dampened investor sentiment.

Stability and consistency in policymaking are essential for fostering a pro-business environment.

Nehruvian Socialism: An Enduring Influence

1. Legacy of Nehruvian Policies

The foundational years of independent India were shaped by Nehruvian socialism, emphasizing state control and public-sector dominance. While these policies were essential in post-colonial India, they have left behind a bureaucratic inertia that hampers modern governance.

2. A Visionary Clash: Modi vs. Nehru

Prime Minister Narendra Modi’s vision of reducing state intervention contrasts starkly with the remnants of Nehruvian socialism. Despite Modi’s push for privatization and market-driven reforms, bureaucratic resistance and statist impulses persist, leading to policy errors that slow economic progress.

India must shed these outdated shackles to unleash its true economic potential.

Actionable Recommendations: Charting a New Path

1. Recalibrating Monetary Policies

To revive growth, India should reconsider its real interest rates. A more accommodative monetary policy could stimulate borrowing and investment without jeopardizing price stability.

2. Creating an FDI-Friendly Environment

Reinstating BITs and ensuring enforceable contracts are vital steps toward attracting foreign investment. Clear, predictable regulations and a focus on ease of doing business can position India as a global investment hub.

3. Overhauling Taxation Policies

A comprehensive review of taxation is crucial. Rationalizing GST, aligning corporate tax rates with global standards, and reducing unnecessary tariffs can enhance India’s economic competitiveness.

4. Ensuring Policy Stability

Eliminating retrospective tax measures and minimizing frequent policy shifts will build trust among investors. Legislative measures that prioritize long-term stability over short-term gains are essential.

5. Streamlining Governance

Bureaucratic control must be reduced to enable market-driven reforms. Decentralization, transparency, and accountability can make governance more agile and business-friendly.

Way Forward: Achieving Viksit Bharat

India faces a dual challenge: bridging the gap between its per-capita income and its economic aspirations while addressing systemic inefficiencies. The road to Viksit Bharat requires a paradigm shift in how policies are crafted and implemented.

1. Bridging the Income Divide

Despite being the world’s fifth-largest economy, India’s per-capita income remains below $3,000, far behind developed nations. This disparity underscores the need for inclusive growth policies that uplift all sections of society.

2. Acting on Aspirations

India must transition from being content with emerging economy benchmarks to embracing the standards of developed nations. This means adopting innovative technologies, fostering entrepreneurship, and investing in human capital.

Conclusion

The journey to Viksit Bharat is a complex yet achievable goal. It demands a break from outdated ideologies, consistent and transparent policymaking, and a commitment to fostering a pro-growth environment. By addressing its challenges head-on and adopting a forward-looking approach, India can unlock its full potential and emerge as a global economic powerhouse.

FAQs

Analysis of The Indian Express Editorial 2 : One Down, More to Go

Context:

India’s legal framework includes laws that not only contradict constitutional values but also harm marginalized communities and restrict personal freedoms. Repealing such laws is vital for justice and democracy.

Introduction:

In a democracy like India, laws are meant to safeguard the principles of justice, liberty, and equality. However, some outdated or regressive laws contradict these principles and perpetuate systemic inequality. It’s time for the Union government to critically assess and repeal such laws to ensure the protection of individual freedoms and uphold the values enshrined in the Constitution.

This article examines four such laws—Anti-Conversion Laws, provisions under the Bharatiya Nagarik Suraksha Sanhita, the Unlawful Activities (Prevention) Act (UAPA), and the Bombay Prevention of Begging Act, 1959. These laws are not only misaligned with constitutional guarantees but also fail to serve the public good effectively.

1. Anti-Conversion Laws: Undermining Personal Freedom

Violation of Constitutional Rights

Anti-conversion laws, designed to regulate religious conversions, often end up violating two fundamental rights:

• Freedom of Religion (Article 25): These laws impose restrictions on an individual’s right to adopt or change their religion, requiring state approval or prior notice.
• Right to Privacy (Article 21): By monitoring personal decisions, the laws foster a climate of surveillance over private matters.

Promoting Discrimination and Harassment

These laws disproportionately target interfaith marriages, perpetuating harmful stereotypes such as “love jihad.” They also create opportunities for harassment and communal tensions, especially in states where religious polarisation is already high.

Contradicting Democratic Ethos

India’s secular democracy rests on the premise of individual autonomy and equality. By imposing paternalistic restrictions on deeply personal choices, anti-conversion laws undermine these principles and erode public trust in democratic institutions.

2. Police Custody Provisions in Bharatiya Nagarik Suraksha Sanhita

Erosion of Safeguards Against Custodial Abuse

The new provisions under the Bharatiya Nagarik Suraksha Sanhita fragment the 15-day custody limit, allowing repeated police custody during the overall remand period of 60 or 90 days.

• Risks of Misuse: This change increases the risk of custodial abuse by enabling prolonged and intermittent detention.
• Violation of Individual Rights: Repeated custody undermines protections against arbitrary detention and violates the principle of human dignity enshrined in Article 21.

Encouraging Arbitrary Detention

The fragmented custody period could result in individuals being subjected to undue stress, harassment, and abuse, further eroding trust in the judicial system. This reform dilutes essential safeguards that were established to prevent misuse of power.

3. Unlawful Activities (Prevention) Act (UAPA): Silencing Dissent

A Threat to Democratic Freedoms

The UAPA’s vague definition of “unlawful activities” allows the government to designate individuals or organizations as terrorists without sufficient evidence or due process.

• Undermining Free Speech: The law criminalizes dissent, directly infringing on the right to freedom of speech and expression (Article 19).
• Violating Fair Trial Principles: Long detention periods without charges (up to 180 days) violate due process and the right to a fair trial under Article 22.

Disproportionate Use and Misuse

The conviction rate under UAPA is abysmally low at 2.8%, highlighting the law’s misuse. It has often been weaponized against activists, journalists, and marginalized groups, thereby tarnishing India’s commitment to justice and equality.

Erosion of Justice

By allowing property seizures and prolonged detentions, the UAPA further erodes democratic norms, prioritizing state power over individual rights.

4. Bombay Prevention of Begging Act, 1959: Criminalizing Poverty

Criminalizing Acts of Survival

This outdated law criminalizes begging using vague definitions, encompassing acts like asking for alms or street performances. Such criminalization is inherently unjust:

• Violation of Article 21: It denies individuals the right to life and dignity.
• Violation of Article 19: It infringes upon freedom of movement and expression.

Disproportionate Impact on Marginalized Communities

The law disproportionately affects the homeless and destitute, criminalizing their survival strategies while ignoring systemic issues like unemployment and poverty.

A Misguided Approach to Poverty

Rather than addressing the root causes of poverty, the Act shifts the responsibility away from the state, perpetuating inequality and neglecting the government’s obligation to uplift marginalized communities.

Conclusion:

The four laws discussed here exemplify how outdated or poorly implemented legislation can harm marginalized groups, erode individual freedoms, and contradict constitutional values.

India’s Parliament must step up to critically reassess these laws and repeal or reform them to reflect the ideals of justice, equality, and liberty. A modern democracy cannot thrive on archaic laws that hinder progress and perpetuate discrimination. The time for change is now—let’s ensure our legal framework aligns with the aspirations of a fair and just society.

Table: Key Issues and Constitutional Violations in Selected Laws

Law	Key Issue	Constitutional Violation
Anti-Conversion Laws	Restricts religious freedom and privacy	Articles 25 and 21
Bharatiya Nagarik Suraksha Sanhita	Increases risk of custodial abuse	Article 21
UAPA	Criminalizes dissent and denies fair trials	Articles 19 and 22
Bombay Prevention of Begging Act	Criminalizes poverty, ignores systemic issues	Articles 21, 19, and 14

FAQs