Economic freedom not old fashioned theories of development will lead to growth and prosperity

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10 comments Page 1 of 1.

Dennis said:   1 decade ago
Today is the era of globalization and liberalization where Indian establishments are in competition with some of the best international players. This has been possible because of the free market policies set by the Indian government which helped India become one of the strongest economies if the world ever since the License Raj Era of '90.

During the License Raj era, entrepreneurs were not allowed to start organizations thanks to extremely cumbersome legal procedures and the entire decision making power was in the hands of the bureaucracy which was extremely corrupt and narrow-minded. Also since there were very few private players and since competition was hardly present, there was no incentive to develop higher quality products and innovate.

But during the post '91 period, India has seen a number of much needed economic reforms focusing on economic freedom, free trade policies, foreign investment in the form of FIIs and FDIs, which has helped India develop and become a market for international trade and business.

Providing economic freedom is necessary to promote entrepreneurship, which has been one of the mainstays of the Indian economy. This has led to the establishment of several private players like the Tata Group, WIPRO, Birla, MAhindra & Mahindra, KIngfisher, Infosys, e. T. C. All of which are competent players in the international market and are flag runners for Indian economic growth.

Hence I believe that it is important to give economic freedom rather than following old-fashioned theories of development.

Arunav Baruah said:   9 months ago
To my opinion, giving economic freedom is the most important need of the hour. Old-fashioned socialistic conservative thoughts have no place in today's economic growth. All the powerful socialistic countries now are on the brink of economic collapse suffering from enormous inflation rates. It is because of the facts that govt can not and should not interfere in all aspects more than the required level of vigilance. India has now become the fifth largest economic power in the world and should become the third largest by 2030 only because of globalization and liberalization post-1991. We have witnessed FDI flowing to India and big domestic industrial giants like TATA, Reliance, Wipro, etc are contributing to the growth of the economy of India through industrialization and more importantly creating job opportunities for millions.

I also agree that both micro and macro-level economic development are important for developing countries like India.

While rural microeconomy can be linked with the agrarian approach, urban areas can be linked with robust macro-level economic ways like heavy industries. Govt should work out with industry-friendly policies for macro development and be supportive for micro-level economic development through startup and MSE entrepreneurs. This will give a balanced approach between both models.

Kartik V said:   1 decade ago
Considering the fact of India's Economic turnaround (after 91) when it comes to monetary terms can be cited as one of the example where we would definately require many planned reforms to bring in an economic change.

However let me emphasize on the point of "Old being Gold".

What the govt and our bureaucrats need to consider is how we could generate money + development and raise the standard of every level in the society.

Agreed to the facts that there are many other things apart from only the economic reforms which play a big role and as a matter of fact all these are interrelated and interdependent so at this time we would definately require the old policies to be considered and brainstormed.

To give an example "We can see the condition of our Power sector where 1/4th of it has been given to private investment and the private players are capitalising on it. However one of the issue is presently we have many Chinese manufacturers in collaboration with these private players who have entered in competition and posing a threat to our slow-runners".

There should always be a consideration of fund raising and development while allocation of funds and framing policies is what I would like to conclude.

Mukesh said:   1 decade ago
Governments can promote economic freedom by providing a legal structure and a law-enforcement system that protect the property rights of owners and enforce contracts in an evenhanded manner. However, economic freedom also requires governments to refrain from taking people's property and from interfering with personal choice, voluntary exchange, and the freedom to enter and compete in labor and product markets. When governments substitute taxes, government expenditures, and regulations for personal choice, voluntary exchange, and market coordination, they reduce economic freedom. Restrictions that limit entry into occupations and business activities also reduce economic freedom.

As time goes on, these measures of economic freedom will improve and our understanding of the relationship between private property and free markets and economic performance will similarly improve. But in the great debate between economic freedom and political planning, the evidence is increasingly clear. Economic freedom leads to better economic results.

Sonali said:   1 decade ago
Yes free economy brings prosperity. It provide healthy atmosphere for entrepreneur to grow. More focus should be given to development of Small and medium scale enterprise and Micro small and medium scale enterprise sector which contributes to the improvement of overall gross domestic product of our country thereby leading to economic stability.

We should control the foreign direct investment and foreign institutional investment investment in our economy which maximize their profit and the we became the looser. Being an agrarian country reform in our agricultural sector is more important. We should provide our farmers high technology instruments seeds but we should also focus on the quality as well as quantity. It will boost our production. Huge employment will be generated and country will trade the path of growing and healthy economy with lesser inflation.

Uttara said:   7 years ago
Hello everyone. To my opinion, Development is inward looking while economic freedom is outward. If there is economic freedom like freedom in expo thert import of goods and services then new world class technologies flow into the nation. Thus a developing nation can learn and implement those state of the art technologies into its own betterment to increase economic output thus helping develop the whole nation. Post-1991 liberation privatisation and globalisation, India has become a veteran player in a global arena. So economic freedom is most important rather than inward looking development for any country's growth and prosperity.

Poonam said:   1 decade ago
Hi Friends,In my view giving Economy Freedom rather than follow old fashioned economic system is really good and helpful for Indian Economic growth and development.In India There are lots of MNC's present who are independently working for Economic growth for our country.Developed countries like US,U.K, who believed in independence and now they are world leader economy.Freedom in Economy also help to make new relations with countries through that import and export will increase and foreign currencies will come exchange which help to economic growth of our country.

Pranab kumar das said:   1 decade ago
Dear sir yes it is a GOOD IDEA TO GIVE freedom to economy rather than follow old fashion of economic system where govt. Lot of restriction, the world economy is growing rapidly and to sustain in the world economy it is important to give freedom in export and import and other section to increase the domestic product, if you look at the american economic system they believe on independence and they are the world leader of economy. Freedom in economy also enhance and motivate towards new entrepreneurship.

Zahid Farooq khan said:   6 years ago
Economic freedom can be achieved by providing support to all those people who are hard work into their industries and factories.

Govt should focus private sector fully so that more people can be given good job serving their livelihood.

Kisha said:   2 years ago
Socialism is a joke & doesn't scale up. It's okay to have publicly accountable socialism within communities, within people's own social bubbles, but not for the entire country. It's a micro plan that doesn't work macro.

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