The problems of India & their reasons

Veerender Kumar

Problem Number-1: Poverty

Possible reasons: 1. Colonial Rule

See the Indian share in global GDP has reduced from nearly quarter of Global GDP to nearly 3% when British left India. It so happened because deliberate de-industrialization of India. But it is not the only reason. But anyway, let us discuss it.

• India had no demand for European goods & services because of many reasons; like:

a. India had almost every product & service Indians needed; Britishers had very few things to offer

b. British Goods were very costly

c. They were of inferior quality

d. They did not match with cultural taste & preferences of people

• So, there was great resentment in England that if this trade pattern will continue then despite parts of India being part of British colony; England will be never able to subjugate India for longer time. This resentment was led by Mercantilists. (explore more). Following policies were implemented in India

a. Ban community level production of majority of the productions which can be potential threat to British production systems

b. Physically dismantle the community production systems (like primitive factories)

c. Impose tariffs at least 80% or more on Indian goods imported to England to make Indian imported goods non-competitive (because Indian goods were of better quality & extremely low cost. For example, an Indian shirt costed Rs 100 in England then a British made shirt costed at least Rs 160 or more. A tariff of 80% or more made Indian goods non-competitive).

De-Industrialization of India

De-Industrialization of India d. Forcing Indian communities to produce preferably only in British factories. Adding to this, Indian producers or traders can sell their productions only to Britishers. Britishers did not pay even the subsistence cost. It forced extinction of majority of Indian production systems.

e. Exports from India was made very costly by imposing high taxes on exports making it almost impossible.

f. High excise duty within India so that even trade within diff parts of India became too costly.

g. Dismantling of craft guilds, production unions and production associations (called mandals, panchayats & shrenies मण्डल, शे्रणी, पंचायत in India). These institutions took care of price, quality, standardization, organization of market, knowledge ownership & knowledge transfer.

h. Many of the expert communities were even physically tortured & relocated so that they can disintegrate and their knowledge gets destroyed.

i. Destroy all Indigenous knowledge & production system in India by any means.

All of the above steps (along with many which r not listed) led to rapid de-industrialization of India forcing a large number of people to become homeless, jobless economically handicapped. The process of dismantling traditional institutions was so fast and intense that it led to several famines as soon as East India Company came to power. All the people who left manufacturing became a part of marginal farmers.

Even the farmers were not spared, the total tax collection from farmers & manufacturers were upto 50% or more of their production.

De-Industrialization of India Glimpse of stats

Though majority of stats are not available or are available with India House England. Currently, it has been made a part of British India House Archives. However, many eminent people have tried to capture them. Notable ones are:

a. R C Dutt (Economic History of India)

b. Dadabhai Nairoji

British textile exports to India

One can see the rate at which Textile exports from England to India increased within a time span of 20 years. In 1813 a Parliamentary Committee was set-up to discuss the excesses in Indian Colony. The committee said that if these oppressive & discriminatory policies r not continued then factories of Manchester will close down and Britain will become importer of cheap Indian goods.

R C Dutt Economic History of India Page No 257 and nearby pages

De-Industrialization of India & Industrialization of Europe • It is painful fact that history books & academics of India glorify the Industrialization of Western Europe

but it swiftly denies to mention the devsatation of industries in India. • The British were successful in destroying majority of knowledge systems in India hence making its

inhabitants the poorest in the world. • The bigger challenge is that “WHY DID INDIA NOT RECOVER AFTER AFTER ITS INDEPENDENCE FROM

BRITISH”. Before discussing this question further, let me introduce you to how industrialization really happened.

There were competing knowledge & production systems in the world. Some of them got support & protection while some of them got prosecution. Those who were prosecuted died out while others flourished or survived. Indian was destroyed by British & never allowed even after independence to regain its lost opportunity.

X X

X X

Post Independence Knowledge & Production System KPS in India

• Post Independence India continued with the British policies • It was assumed that India needs to import KPS from West so that it can industrialize itself • Evolution of its own KPS and associuated institutions was always resisted saying that “WHAT IS THE NEED

OF RE_INVENTING THE WHEEL” • It was never recognized that if anyone has invented the wheel and it has led to economic prosperity &

military power for him then he will never tranfer this competence • It is also a very important point to lunderstand that nobody can transfer or copy a competence,

everybody builds it, uniquely • So, if India has to bring its people out of poverty then it has to improve the KPS available with people and

upgrade it to a point where it can become world class • India needs to re-industrialize itslef like any other nation; there is no short-cut; but yes, this process will

take only few decades if efforts r put properly.

Discard traditional Indian Knowledge & Production Systems; no emphasis or effort on their organization or up-gradation

Import European/Western Knowledge & Production Systems

Establish islands of Knowledge & Production Systems like IITs, Polytechniques, Heavy Industries, Scientific terminologies etc. Even over-emphasis on IT can be brought in this category

No social or industrial feedback loop; hence no/negligible innovation or creation of Indian Knowledge base

Again import from West/Europe… Keep importing

Knowledge & Production Systems in Free India

The Important Question is WHY India continued with the British Era policies of Knowledge & Production Systems?

Answer is simple, discussed in next few slides.

Dharma

Individuals are independent & unique Individuals have their own discovery of Ideas Individuals should strive to integrate with Cosmic Ecosystem

Hence ideas can’t be copied or imposed Hence multiple ideas can peacefully co-exist Hence humans are integral part of nature

Yogic theory of Civilization

Indian nationalists including Gandhi derived their ideas of civilization. These people strongly supported & promoted the ideas of Swadeshi, Swaraj etc.

Monotheism

Ideas are universal

Entire humanity has a single pathway, destiny Nature has no or negligible role Asia & Africa are “uncivilized”, Europe is the

ultimate achievement of human civilization; so they must be “colonized” & “civilized”

Linear theory of Civilization

West derived their ideas of civilization

Theory of Civilizations

Educated Indians, intellectuals, liberals, seculars, Marxists etc. derived their ideas of civilization from this theory.

Nationalists

Individuals are independent and should follow their own conscience; Similarly Nations should also develop their own paths; especially India which has so much population, resources, consumption power & eternal history of leading the world

India must develop its own knowledge systems, production systems, governance structure, healthcare, education etc.

Educated Indians/Intellectuals

Individuals are not significant, all of them follow the same universal path of evolution/development; Similarly Nations also follow the same linear path of development

India will have & must have to follow the European/Western footsteps as any other nation as it is the only path

India under Swaraj must have its own existence

India will copy-paste European/Western knowledge systems, production systems, governance structures, education, healthcare etc.

Educated Indians/Liberals are on the controlling positions in media, govt & academia; hence they have forced India to follow the Western footsteps.

Applying Theories of Civilization on India

If Nationalist view of civilization

Traditional Knowledge & Production Systems

Organize, Upgrade, Standardize Traditional Knowledge & Production Systems

If Western view of Civilization

Traditional Knowledge & Production Systems

Discard Traditional Knowledge & Production Systems and Import European counterparts

Disseminate it through education starting from Secondary (Basic Taleem) to University level

Disseminate to industries to increase their quality & productivity; upgrade them

Upgraded Indian Knowledge & Production Systems

Disseminate imported Knowledge & Production Systems t through education starting from Diploma or Graduation level

Establish completely new industries & educational institutions with little or no connection with Traditional Knowledge & Production Systems

No Social or industrial feedback loop

Follow Western KPS in India: Derived from Theory of Civilization

1. Educated/Intellectuals enforce that copying the western KPS is the only way out is fanatic, racial, discriminatory & anti-national. They do not allow indigenous KPS to evolve. I will discuss its economic consequences later.

2. Nationalists do not say that we must cut exchanges with WESTERN KPS but they strongly say that we need exchanges not blind following

3. Nationalists have a strong opinion that let us develop our own KPS and bring it to globally competitive level

4. In last 65 years of independence, India has followed the ill-advices of educated/intellectuals

Betrayal & ignorance of Intellectuals & Educated people

Mapping & standardization of traditional knowledge is very essential for making them economic & bringing people engaged in them out of poverty. The same applies to MSMEs. They together employ more than 90% Indians. We will discuss it in greater detail in following slides.

Details: How to develop our own KPS

Price of Any Product/Service Subsistence Component • Cost for Physical Labour, Rent, Raw Material, Natural

endowments (water, air, etc.) • It contributes to nearly 25-40% cost of product • Income margin on subsistence component is extremely

low say 5-12% in most of the sectors. It is sometimes negative.

Knowledge Component 1. Intellectual Property Ownership 2. Standardization of product/services 3. Increased quality of output and increased productivity

of creating a product/service • It contributes to 60-75% cost of the product • Income margin on knowledge component is very high say

starting from 100% to any upper limit. Though it is difficult to calculate but any new upgradation/innovation is supposed to have minimum 800% margin (in economics).

Knowledge component is missing in almost all traditional products/services and products & services of large number of MSMEs, hence their profit margins are minimal (5-12%)

Traditional occupations & production systems are working at Subsistence level

Since overwhelming majority of Indian workforce is engaged in traditional occupations & MSMEs which are working at subsistence level; hence they are economically & technologically handicapped

Inputs in any product/service

Labor, Rent, Raw Material

Standardization

IP Ownership

Quality Productivity

Branding, Optimization

Better bargaining, positioning

Empowers innovation, Defines ownership Subsistence: Just survive

Price of Product

Knowledge Component Subsistence Component

Pricing of Products & Services

So, people are working but they do not get good returns because their work doesn’t contain “Knowledge Components”.

Some painful stats: 1. 93% people are working in unorganized sector which mostly consists of MSMEs & traditional occupations

including agriculture 2. Rest 7% people are working in organized sector doesn’t mean that their work includes Knowledge Components

but yes, they have better incomes

If we want to bring people out of poverty, we need to increase the share of Knowledge Components in their products/services.

But why has nobody done it so far? Because Intellectuals & educated people have always opposed it. They strongly advocate that there is nothing in India to be upgraded or improved. No knowledge in India exists which can be organized & standardized.

The detailed process of creation/enrichment of Knowledge components

• Profiling

• Locating over Map

Location Mapping

• Input-Output-Process Mapping

• Clustering

Process Mapping • R&D

• Codification

• Optimization

• Automation

Standardization

• Skill up-gradation

• Transfer to producers

• Transfer through Education

Knowledge Transfer

Traditional Knowledge & Production Systems and MSMEs

Organize, Upgrade, Standardize Traditional Knowledge & Production Systems

Disseminate it through education starting from Secondary (Basic Taleem) to University level

Disseminate to industries to increase their quality & productivity; upgrade them

Upgraded Indian Knowledge & Production Systems

Using latest information technologies and mobilization of sufficient resources, traditional KPS & MSMEs can be organized & standardized within a time period of 5 years or even lesser. It can be upgraded upto globally competitive level within next 5-10 years. It means that starting from where British destroyed us, we can rebuild India in only 15 years. All knowledge can be standardized in major Indian languages and disseminated in these languages so that this knowledge reaches out to maximum people and empowering them. Since, Indian languages r similar by their construct, it will be not very difficult at all. We don’t need Greek or Latin based standardized knowledge; we can even develop our own language policies for standardization of KPS using Indian languages. It will help in national integration and elimination of language based politics. Recall each major language is spoken by crores of people which means that we have critical economic support for every language.

This same KPS can b extended to South & South-East Asia

because of similarities in these languages. It represents a population of 200 crores. Economics is in our favour!!!

Governance in India is just continuation of British with slight modifications

Lower bureaucracy/Zamindaars

Collector /Higher

bureaucracy

British Government

in India

To Britain Budget of Government of Free India

Corruption at Political level

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British

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Corruption at Higher bureaucracy

Corruption at lower bureaucracy

Forced attempt to make funds flow downwards through schemes

Forced attempt to make funds flow downwards through schemes

Forced attempt to make funds flow downwards through schemes

Indian Citizens Indian Citizens

money

money

money

If Nationalist view of civilization is being followed like that of Gandhis

Dismantle the British Systems

Re-establish & develop Indian Systems like village republics, decentralized governments, justice through consensus and reconciliation etc.

If Western view of civilization is being followed

Copy European Systems or continue British Systems

Follow any Western model of Democracy or Communism; follow their legal systems, centralized government etc.

Contemporary India is nowhere near to Gandhian Ideas or nationalist ideas.

Contemporary India is following the footsteps of Europe as Intellectuals or Educated people want.

Why do we still follow the British System because Intellectuals & educated people want it to continue. Current system gives them a great advantage.

Governance in India

Aspect of Civilization

Nationalist or Gandhian Educated/Intellectuals Current Indian situation

Agriculture Organic Chemical based Chemical based

Healthcare Emphasis on prevention by better lifestyle & naturopathy (Ayurveda, Yoga etc.)

Emphasis on cure by impulsive suppression of disease (Allopathy)

Emphasis on cure by impulsive suppression of disease (Allopathy)

Sports Kabaddi, Kho-kho, Kushti, Polo, Martial Arts, Chess

Glamorous, government supported: Cricket, Hockey

Cricket is being played because British n Maharajas played it

Performing Arts Hindostani, Carnatik, Folk, Classical Dances etc.

Filmi Music; Filmi Dance Mixture of Indian & western

Cultural festivities All Indian festivals All Indian festivals + Western festivals like Mother’s Day, Valentine Day

Mixture of Indian & Western

Further Scope of explaining the problems

I have not done any comprehensive comparative study on these aspects, I m just enlisting the scope of understanding problems existing in India & their solution.

Contemporary signals

• Trust deficit b/w people & Govt.; rising social unrest across the country

• Government & people have no real connection • Education is useless for most of the people; for

others it doesn’t make them productive • Technology & knowledge has been made “racial

entities” because one can get them only if he follows particular education in a particular language

• There is a cultural confusion in the country • Indigenous thoughts & cultures are endangered • Service sector is growing at a fast pace but god

knows what will happen with manufacturing & agriculture

• Income disparity is increasing • Human interventions in environment is

becoming unsustainable • …

The Future of India as a Nation What intellectuals & educated people think?

• India has gone to dogs & nothing works • India should follow Western models more

strongly rather than half-hearted • India is supposed to become a superpower

nation in coming decades

What politicians think?

• Politicians have no consistent point of view; they have only their own interests & the interests of their parties

What people think?

• They have outsourced their job of thinking to intellectuals, educated people & politicians

What if current scenario continues

• India will always remain a sub-ordinate power to Western Powers be it industry, military, culture or science

• India will remain a developing country for the foreseeable future

• India will remain in the state of confusion • India will remain a consumer of knowledge &

culture • India will westernize to a large extent killing its

own cultures, identities & knowledge • Indian traditions & cultural products will be

found only in museums • India will not be in a position to provide a

leadership to other developing countries

What we think about the Future of Indian Civilization What is the way out?

India will always remain a poor nation because majority of its people r forcibly made economically & technologically handicapped.

• There is nothing called “universal” ideas • Difference is not always bad, difference is just

difference; they must exist for diversity. So, it is not bad if India exists as diff from West

• India is different from every other country, so there is no need of blindly following their solutions for problems in our country

• India must have to develop its own indigenous solutions for everything; there is no short-cut

• Knowledge is non-transferable, every nation has to evolve its own; build its own competence

• Until or unless people r not empowered by knowledge, they will always remain poor.

There is an appeal to a large number of educated Indians & intellectuals to start questioning the “Universality of Linear Theory of Civilization”

It requires a critical thinking and multiple revision of the ppt to understand its purpose & soul.

I m not against educated or Intellectual people; but however I m against their racism (WEST IS BEST &

UNIVERSAL).

thanks ask me questions