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

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The Green Revolution and Industrial-Growth in India-A Tale of Two Paradoxes and a Half

The cowdung capitalism of green revolution in India has spawned a new breed of capitalists. These offsprings of gentlemen farmers are operating in an intermediate zone of agriculture and industry. They are eager to venture into the field of industrial capitalism. But the entry point in industry is uninviting and the future prospects dim. Under the new economic policy the economy is oriented towards the consumption pattern of the top decile of the population, Imports of technology, capital goods, and foreign capital are liberalised. The NEP would make India's economic development unstable, unequalising, and more crisis prone. Its impact on the newly emerging farmer-capitalists would be severe as they are under pressure from above as well as from below. They are threatened, in a shrinking market, by big capitalists including multinationals; on the other hand, they are confronted with the rising demands of workers, without enjoying the benefit of super profits, In any case, as simulations with Walrasian empirical general equilibrium models show the potential material gain from economic liberalisation is miniscule, if at all, hardly exceeding 0.3 per cent of GDP. The transition from cowdung capitalism cannot be accomplished through a policy that exacerbates dualism in the economy.

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