ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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India s Economic Crisis Dialectics of Sub-Imperialism

India's Economic Crisis: Dialectics of Sub-Imperialism INDIA is in crisis, in every sphere, social, political, economic. About the economic crisis, broadly four alternative theories have been advanced so far. |a) According to one of them, this is a Ricardian crisis, with a little bit of Malthus thrown in. With the growth of population, more and more marginal land has been brought under cultivation, costs of agriculture have risen, so have prices of agricultural goods. Landowning rentiers have benefited; and industry has been suffering under the weight of rising costs and hence falling profits. (1)) The second theory blames the terms of trade which have tilted in favour of agriculture as the economic and political hold of the farm lobby has gone up in recent years; savings have (alien; and industry is up against the wall of limited home market, (c) The third theory finds the root of the crisis in the very nature of the mixed economy of private and public sectors, where the government buys the inventory of the private sector and thus places a large sum of liquid funds in the hands of the private sector. Massive procure- ment of foodgrains, and large-scale export subsidy are cited as examples of such official operations whereby the private sector manages to dispose of its inventory quickly. Such a situation is prone to speculative trade and inflation, (d) The fourth theory correlates the ' present economic crisis with the slow demise of public sector's investment.

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