The Economy-Wooing the Kisan

sumption but for the outlay on high quality housing and urban amenities, aviation and superior travel facilities, telephone services, and so on sustains a large part of the existing industrial structure. This means that the further expansion of industry is limited by the narrowness of the market." So long as these structural constraints on investment and production remain intact, it is futile to expect to sec the capital market in full bloom. The real danger is that the measures urged upon the government, and progressively adopted by it, to try and step up investment and production in the very short run will aggravate the basic constraints by further distorting the industrial structure in the direction of goods and services of upper class consumption (for example, following the dismantling of industrial licensing) and by further accentuating the disparities in distribution of incomes and purchasing power (through, for example, reduction in direct and indirect taxes and provision of a variety of subsidies which benefit the urban and rural rich). The measures being advocated supposedly for widening and strengthening the capital marker belong to this genre and, as surely as they will be accepted, they will also worsen the disease in the long run.