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

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Central Budget 1986-87 Wind of Change

Bhabatosh Datta In the course of the last eleven months the Union government seems to have learnt some lessons. It has seen that despite substantial tax reliefs, the industrial production index has risen only 6.4 per cent in 1985, a rate substantially lower than the 8 per cent growth on which the Seventh Plan estimates are based. The government has also realised that the opening of the doors to imports of machinery and industrial ancillaries has led not only to an intractable balance of payments crisis but also a considerable damage to indigenous producers of such machinery, These producers have been led up the garden path by the theology of import substitution, and they include a large number of public sector enterprises. On the Plan side, the government has shown some recognition of the fact that, in the Indian situation, poverty cannot be alleviated by depending on market forces and expecting the benefits of increased production to trickle down to the poor automatically From the fact that certain lessons seem to have been learnt, one has some grounds for expecting a wind of change. But such a wind

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