BOOK REVIEW

INDIA UNBOUND BY GURCHARAN DAS

Presented By Goutam Sahu IIBM-013 Neha Puri IIBM-030 S. Tripathi IIBM-028 S. Nigam IIBM-026

WHAT OTHERS SAY

A ringside view of the

economic and social transformation of a nation.. One of the most readable and insightful books to appear on Indias torturous economic path Describes Indias economic policies analytically, logically and vividly.
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CONTENTS IN THE BOOK

Part One: Our Spring of Hope ( 19421965) Part Two: The Lost Generations ( 19661991) Part Three: The Rebirth of Dreams ( 1991-1999)
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THE PRE INDEPENDENCE STORY

INDIAN GLORY
RICH INDIA

Columbus went in quest of riches in India and discovered America Indias wealth lured all Golconda was famous for its diamonds Vasco Da Gama was sent to find India English came much later
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INDIAN GLORY
India was well developed in

comparison with Western economies Annual revenues of Aurangzeb were ten times that of his contemporary Louis XIV Accumulated a wealth of more than a one and half billion dollars Spent this money on development of monuments like Taj Mahal
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INDIAN GLORY

India produced worlds best cotton

yarn and textiles Exports were half of the output Controlled a quarter of the worlds textile trade Changed dressing habits of Europeans and replaced woolen clothes More than a fifth of the worlds wealth Well developed banking systems Bills of exchange were honored throughout Asia

SO WHAT WENT WRONG ?

BRITISH RULE IN INDIA

Britain taxed the Indian farmer

heavily Transferred surplus back home to finance its own deficit 8% of GNP was transferred to Britain every year Financed Industrial revolution back home In 1830, share of Industrial production was 17.6 % which declined to 1.7% by 1900
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WAS BRITISH RULE THE ONLY PROBLEM?

Industrial revolution

destroyed Indian textile industry Indian industrialists were not allowed to set up modern mills Indian social system also contributed to its problems Indian superstitions, beliefs, indiscipline contributed equally
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THE GREAT PARADOX By 1914, India had the largest jute manufacturing factory Fourth largest cotton textile industry Largest canal network Third largest railway network 2.5% of the world trade

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DIVIDED WE FALL

TEAMWORK

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CASTE AWAY

CASTE

Four main layers in Indian system

Traditionally not accorded a

high place to the making of money System created inability to non cooperate The Brahmanical advantage
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INDIA BECOMES FREE

STORY POST 1947 TO 1991

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FREE INDIA

Inspired by communist Russia

than capitalist America Influence of socialism Did not trust private entrepreneurs Decided to create the state as a business house Experienced an agricultural revolution
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Choosing the wrong path

The six wrongs

1. Adopted an Import substituting path

2. Set up inefficient PSUs

3. Overregulated the private enterprise

4. Discouraged foreign capital

5. Pampered organized labour

6. Ignored education
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THE EFFECTS

In 1960, our per capita income

was more than China, now it is half Half Indians are poor by international standards Four out of Ten Indians are illiterate India is ranked 134th out of 174 on the UN Development Programs Human Development Index Our failure came less from ideology and more from poor management
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SECOND LIFE. POST 1991

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MEN BEHIND WHEELS

THE GOLDEN SUMMER OF

1991

Economic revolution Dismantled license raj Free import controls Opened country to foreign investment Privatised banking, airlines, power, petroleum, telecom, postal sectors Tax rates came down Set up Foreign Investment Proposal Board
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NEW MONEY

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NEW MONEY

INFOSYS Started by 6 engineers with Rs.10,000 More than $ 15 billion today ZEE GROUP Started by Subhash Chandra, a grain Trader from Haryana Pioneered laminated tubes Entertainment business with Esselworld Entered Cable business first
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NEW MONEY

ARMEDIA Started by engineer working with Intel Started own firm in Bangalore In two years, sold to Broadcom for more than Rs.300 cr RAMESH CHAUHAN Sold Thums Up to Coke for more than 180 cr
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OLD MONEY

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OLD MONEY

Owned and managed by a

family as a joint family Haveli ki umar saath saal The story of Buddenbrooks Professionally managed companies respond better to challenges and decision making

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A NEW COUNTRY

Our great strength is our

people, weakness is government and hope is internet Our rich country became poor and would become rich again We are powered by an ICE age We missed the industrial revolution but have caught the information revolution
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A NEW COUNTRY

Unleash human capital

through education Creation of middle class means success for India New India is on competition and decentralisation Majority of Indians in the 21st century would be freer and prosperous than their parents and grandparents
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A NEW COUNTRY
India is an elephant and has

begun to lumber and move ahead. It will never have speed but will always have stamina. The elephant is the wisest of animals/the only one who remembers his former lives and remains motionless of time meditating. India will have a more stable, peaceful and negotiated transition than, say, China
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Book review Based on India Unbound by Gurcharan Das

THANK YOU!

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