Imperialism is dead, long live new imperialism

Why is it in the news? 

1. The new world order arose from the ashes of World War II. Four important elements of the new world order were - economic integration through a global free trading system enforced by GATT and later on by WTO, international financial institutions like World Bank, IMF and IDA to regulate and to help developing countries in order to have a stable global financial system, the principle of collective security enforced by the UN based on sovereign equality in international affairs and self -determination. 

2. But President Donald Trump is bent upon bulldozing the new world order. He pulled out the US from the Paris agreement and World Health Organisation. He ordered a review of American membership of all international organisations and treaties. The U.S. President Donald Trump has agreed to shut down the U.S. Agency for International Development (USAID), following the president’s recent criticism of the agency’s leadership. He issued the order of reciprocal tariffs, thereby, throwing the global trading system into disarray.  

3. Thus, the US is bent upon pursuing a nationalist foreign policy, promoting its economic and mercantilist interests overriding the overall interest of the world. Moreover, American and Russian officials started talking at Riyadh to end the Russia-Ukraine ongoing war without taking  Ukraine into confidence. Thus, NATO and the European Union will have to reappraise its relation with the US and Russia. 

4. By taking the side of President Putin on Ukraine, President Trump has virtually withdrawn from the security of the European Union guaranteed by NATO.  Secondly, he wants to acquire Greenland, Canada, Panama and even Gaza. If these ventures of the US were to materialise, it would signal the heralding of the new imperial age.  

What is imperialism

1.Imperialism is a state policy and practice of extending power and dominion through direct territorial acquisition or by exerting political and economic control over other areas. It involves the use of military or economic power over the lesser developed countries or areas to get prestige, power and resources. According to Lenin, imperialism is the highest stage of capitalism. The main motivations behind imperialism were economic, political, ideological, security and demonstration of power and prestige at the world stage.  

2. Historically, imperialism has been evident in the empires of Assyrians, Persians, Greeks and Romans. In the modern era, imperialism was carried forward by countries like England, France, Portuguese, Netherlands, Germany, the US, Italy, Japan and Russia. While the old imperialism involve direct territorial acquisition and control through military, conquest and colonisation, the new imperialism after the 15th century was marked by creating economic dependencies through trade, investment and the global market system rather than through direct governance. The new imperialism also involves imposition of cultural values and practices through media, education and consumer goods leading to cultural homogenisation and the erosion of local tradition.  

 The main motivations for imperialism were -  

• The industrial revolution created the demand for raw materials and new markets for manufactured goods. And so, the industrialised countries wanted to secure raw materials like cotton, minerals etc and to establish a market for their manufactured goods. These economic motivations led them to acquire new colonies. 

• Countries also pursued imperialism to enhance their power and prestige. Colonies provided them military bases. 

• Competition among European powers also fueled the scramble for colonies as each country sought to excel others in getting new colonies. 

• Imperialism was also sought on the basis of ideology. The western European powers wanted to spread the civilising mission in the rest of the world. They thought themselves racially superior and so they wanted to spread western culture, religion and governance to the other parts of the world. 

• Imperialism was also perpetuated to secure control of communication lines, to get strategic advantages and to establish buffer states. However,  this often led to increased friction and insecurity among nations.  

Difference between imperialism and colonialism

1. While colonialism is a form of imperialism involving direct control and settlement, imperialism is a broader concept that includes various forms of domination and influence, not necessarily involving direct governance or settlement. 

2. Imperialism can be implemented without establishing formal colonies. It might involve economic dominance, political influence or cultural hegemony. For example, US influence in Latin America, the Middle East and several African countries. Thus, imperialism does not always involve settlement but focuses on influence and exploitation. In short, it involves exerting control through direct and indirect means. 

3. Colonialism involves direct control and administration of colonised regions by the colonialist country. It often involves migration, cultural assimilation and long term governance. In short, colonialism is a form of imperialism characterised by direct control and settlement. For example, the Britishers colonised India, West Indies and the US. Portugal colonised Brazil, Spain colonised Mexico and Argentina, the Dutch colonised Indonesia, the US colonised Philippines. Thus, the European colonists ruled over indigenous population.  In short, colonialism is always a form of imperialism. 

What is neo imperialism ?

1. It refers to the concept where powerful countries exert influence over others through economic, political or cultural means rather than direct colonisation. 

2. It involves the extension of a country’s influence through globalisation, trade and cultural dominance reflecting a modern form of imperialism that does not rely on direct territorial control. 

3. Developed countries and multinational corporations exploit developing countries for cheap labour and raw materials. This form of control is often facilitated by international financial institutions like the international monetary fund and world bank which impose conditions on loans that benefit developed countries at the expense of the interest of the developing countries. 

4. For example, the military intervention of the US in Iraq is an example of neo imperialism. Neo imperialism exerted influence on the developing countries through controlling trade, investment and the financial system. 

How can the developing countries can get rid of neo imperialism

1. Diversification of economies - Developing countries should reduce dependency upon exporting raw materials by  diversifying their economies. This involves investing in manufacturing and innovation in technology so that high valued goods are exported to foreign countries. 

2. Promotion of local industries - Developing countries should go vocal for local. They should promote import substitution strategies by reducing reliance on foreign goods and services. 

3. Strengthening regional cooperation - By forming regional trade agreements, developing countries can create a larger market for their goods and services. They should also make free trade agreements with different countries of the world so that they are not dependent upon a few countries. 

4. Developing countries should promote trade in local currencies rather than in dollars. De-dollarization would reduce the possibility of frequent volatility in the international market. 

5. Enhancing governance and institutions - Developing countries should ensure transparency, accountability and the rule of law so that their resources are managed effectively. Corruption is reduced to the minimum. All these efforts would attract more sustainable foreign investments. 

6.Investing in infrastructure, education and healthcare - Developing countries should focus upon improving infrastructure so that the cost of logistics is reduced. Skilled manpower would further increase productivity. Innovation would further increase value addition of goods and services. 

The above methods and strategies can help developing countries to mitigate the impact of neo imperialism and to improve more sustainable and autonomous development. Asian Tigers like South Korea, Taiwan, Singapore, HongKong have successfully overcome economic dependency through export led industrialisation by leveraging their competitive advantage in cheap but skilled labour force. They maintained a high rate of domestic savings and investments. 

Secondly, regional organisations like ASEAN (Association of SouthEast Asian Nations),  SADC (Southern African Development Community), EU (European Union) have successfully reduced the impact of neo imperialism by way of reducing dependency on any country. Member countries have integrated their economies to facilitate the free flow of goods, services and capital. This integration has helped member countries to achieve economic stability, reducing reliance on external powers. 

Conclusion

Multi polar, instead of a unipolar world, would be a strong safeguard to combat the danger of neo imperialism. The US reciprocal policy on tariffs and its threat to annex Greenland, Panama and Canada are also  examples of neo imperialism because these measures of the US aim at tearing asunder the new world order established after the second World War. It is therefore imperative that developing countries and other developed countries should pursue de-dollarisation to reduce the dependency upon the US, to make efforts for regional economic cooperation, free trade agreements among countries and more focus upon production of high valued goods and services for exports to foreign countries by substituting imports. 

Problems of national integration of India after Independence

 Why is it in the news?

The Union Government imposed President’s rule upon Manipur on 13th February after the Chief Minister resigned. The state has been witnessing intense clashes between majority Meitai and minority Kuki communities since 2023, when the court  suggested that economic benefits and job quotas granted to kukis should also be extended to Meitai communities. It should be noted that more than 250 people died and 60 thousand people have been displaced. After the President’s rule, the state government extended the armed forces special powers Act (AFSPA) for an additional six months to tackle the unrest in Manipur. The ongoing classes between the two communities has led to the growing mistrust among them. The displaced population are living in adequate condition and so it is required that Manipur achieves long lasting peace. The violence between Meitai and Zo-Kuki tribal communities erupted because both the communities wanted to scramble major resources of the state. The continued violence between the two ethnic communities for more than two years is a reflection of the weak status of national integration in India. 

What is National Integration ?

1.National integration refers to the process of bringing together people from different political, social, cultural, religious, linguistic backgrounds within a nation to create a sense of unity, a feeling of oneness and collective identity. It promotes harmony and cooperation among citizens. 

2. It fosters unity while respecting diversity. It encourages coexistence and preserves cultural plurality. It is opposed to assimilation which stands for absorption of one culture into another, thereby, reducing diversity. It is a process where a minority group adopts the culture of the dominant group, thereby losing its own original identity. Thus, assimilation stands for homogenisation. It may be voluntary or forced. It stands for one country, one religion, one language, one culture and one ideology. For example, in the Islamic state of the medieval period, people of other religious denominations were converted into Islam. Those who were left to pursue their religion were called Zimmies, that is, protected people, second class citizens. 

In contrast National integration promotes unity in diversity whereby different religions, cultures, languages, ideologies coexist. 

Problems of National integration after independence ? 

1.Partition, communal riots and problems of rehabilitation - India became independent in 1947 but it was also divided between two countries of India and Pakistan on the basis of two nations theory. The partition triggered communal riots in the country. Atleast, 10 lakh people were killed, 60 lakh people were uprooted. More than 20 lakh people were injured, maimed and  mutilated. More than one lakh women were raped. The communal riots broke out in different parts of the country. Majority of Muslims were cleansed from eastern Punjab under India. Similarly, the majority of Hindus and Sikhs were cleansed from western Punjab under Pakistan. 

2. Merger of Princely states - There were 562 princely states on the eve of Independence of India. These princely states were given the option to choose either India or Pakistan or to become independent. All princely states except Junagarh, Hyderabad and Jammu & Kashmir chose to merge either with Pakistan or India. Junagarh was a princely state situated in Kathiawar region of the present day Gujarat. Its king was a Muslim Nawab while more than 90% of its people were Hindus. The Nawab opted to merge with Pakistan. Hyderabad was a princely state in which the majority of people speaking Telugu, Marathi and Kannada were living but it was headed by a Muslim Nawab. It took the stand to remain independent. On the other hand, Jammu & Kashmir had more than 75% Muslims but it was headed by a Hindu King called Harisingh. He made a stand still treaty with Pakistan and wanted that India should also sign a stand still treaty with him. Thus, he wanted to remain an independent king. He contended that the state of Jammu & Kashmir should be provided neutrality by both India and Pakistan.  

3.Prevalence of feudalism - The Britishers perpetuated feudalism in India by invoking permanent settlement in Bengal Presidency, Northern Madras presidency and Banaras. The Ryotwari system prevailed in the both Bombay and Madras presidency. The Mahalwari system was prevalent in the provinces of Agra, Awadh and Punjab.  On the eve of independence, more than 70% of the lands belonged to zamindars, merchants, traders, contractors and high government officials. While the maximum benefits from agriculture were accrued  by these elements, the maximum burden of more than 60% of the produce were exacted from  peasants,marginal farmers and sharecroppers. 

4. Reorganisation of administration - Because of the partition, the administration was also bifurcated on religious lines. And so it was incumbent to reorganise administration on an All India basis to control subversive elements.  

5. Demands of states on linguistic basis - There was clamour to reorganise states on linguistic basis. 

6. Formation of the constitution of India - The first sitting of the constituent assembly was held on 9th December 1946 in the undivided India. The mounting task for the constitution makers was to make the constitution which stood for all religious, linguistic, regional, ethnic, caste and creed groups.

7. Economic disparities - There were huge disparities between people. The wealth was concentrated in a few hands while 94% of the people were facing starvation. 

8. Caste and social division - Society was fragmented on the basis of caste and religion. High caste hindus treated scheduled castes and scheduled tribes as untouchables. 

9. Food scarcity - Because of the partition, there was acute food scarcity in India . Fertile lands of Punjab producing rice,wheat, cotton and jute went to Pakistan.  

10. Political instability on account of secessionist forces active in North East and communist in Telangana. - The entire north eastern states were on the boil. Nagas, Mizos, Kukis were bent upon seceding from India. 

11. Low agricultural and industrial growth - There was a near absence of change in the technological and production base of Indian agriculture. Indian peasants continued to use the primitive implements. They had been used for centuries. The use of inorganic fertilisers was virtually unknown. As of 1938-39, only 11% of all cropped land was under improved seeds, their use being largely confined to non-food cash crops. There was hardly any investment in terracing, flood control, drainage and desalination of soil. By the 1940s only 27% of the total cultivated area was irrigated. There was a decline in per capita agricultural production by 14% between 1901 and 1941. The fall in per capita food grains was over 24%. 

During British rule, Indian handicrafts and artisanal industries virtually collapsed on account of free trade imposed on India. Although modern industries developed in the second half of the 19th century but in terms of production and employment, the industrial development was stunted and paltry compared with that of the developed countries. The share of modern industries in national income at the end of the British rule was only 7.5%. There was a virtual absence of capital goods and machine industries. In 1950, India met about 90% of its needs for machine tools through imports. For want of industrial growth, most of the artisans crowded into agriculture as tenants sharecroppers and agricultural labourers. Moreover, industries were concentrated only in a few regions. This led to wide regional disparities in income. 

12. Poor infrastructure - Although Britishers developed roads and railways to connect different parts of the country, it was meant to take away raw materials from hinterland and to send them to ports for exports. The railways also spread manufactured goods from Britain in the hinterland of India. Major parts of India were devoid of better infrastructure and so there was less connectivity. 

13. Low level of literacy- On the eve of independence, only 18% people were literate. The female literacy rate was only 8%. If we bifurcate region wise, the illiteracy went more than 90% in the backward states of Bihar, UP, Odisha.  

14. An independent foreign policy to safeguard sovereignty and territorial integrity - After the end of the Second World War in 1945, the world was divided into two warring camps, one led by the US and other led by the Soviet Union. The cold war ensued between both camps. Both camps wanted India on their side. But India wanted to safeguard its independence and so it did not  oblige either of the camps. It pursued the policy of non-alignment in order to take decisions in international affairs on the basis of merit. 

What measures were taken to solve it ?

1. The Government of India took stern action against the elements who perpetuated communal violence in India. Within two years, the government could control communal violence. Hooligans were brought to book. Bad elements were sternly dealt with. 

2. About 60 lakh refugees were rehabilitated in different parts of India. They were provided necessary accommodation. 

3. The princely state of Junagarh was merged with the Union by invoking plebiscite. Hyderabad was merged with India through police action. Jammu & Kashmir was annexed with India when Maharaja Harisingh signed over the annexation of Jammu & Kashmir with the Indian Union on 26th October 1947. All Princely States were provided a privy purse for their upkeep. However, the privy purse was abolished by Indira Gandhi in 1969.

4.India dismantled the prevalence of feudalism by the abolition of Zamindari Act, 1951. The security of tenure of peasants was provided. Ceilings of lands were invoked. More than 60 lakh hectares of surplus land were distributed among landless labourers and marginal farmers. 

5. After independence, the administration was reorganised. All India services like Indian Administrative Service (IAS), Indian Police Service (IPS) and later Indian Forest Service (IFS) were created. In addition, several central services and provincial services were created to make the administration effective and efficient. 

6. States were created on the basis of language. Andhra Pradesh was carved out from Madras Province in 1953 for Telugu speaking people. The State Reorganisation Commission headed by Justice Fazal Ali in 1956 recommended the reorganisation of provinces on the basis of language. It created 14 provinces and 6 Union Territories. Thus, Madhya Pradesh was created for Hindi speaking people by carving out  Mahakoshal, Madhya Bharat, Rewa and Bundelkhand. Bombay province was divided into Marathi speaking Maharashtra and Gujarati speaking Gujarat states. In 1963, a separate state of Nagaland was carved out from the state of Assam  to appease Nagas. In 1966, Punjab was divided into Haryana and Punjab on the basis of language.  Similarly, on the basis of ethnicity, Meghalaya, Manipur, Mizoram, Tripura were created. 

7. Constituent assembly made the constitution of India which professed secularism, socialism, democracy and sovereign republic. Secularism was meant to promote religious harmony among people. Under article 25 of our constitution, every citizen of our country was given the right to promote, profess and propagate their religions. No religious teachings can be done in the government institutions or institutions added by the government. It prohibits the use of state funds for religious purposes. The government cannot impose taxes for promoting any particular religion. It allows religious denominations to manage  their own religious affairs. Moreover, in the case of Kesavananda Bharati vs Union of India (1973), the Supreme Court held secularism as the basic structure of the constitution. Socialism meant for reduction of concentration of wealth and provision for the equitable distribution of the wealth under article 39 B and C. However, government failed to tackle the concentration of wealth so much so that top 1% people have 22% of the national income and 44% of the national wealth of India. 

8. The government launched Five year plans to promote all round development of the economy, to reduce income disparity, to promote growth in the economy by boosting agricultural, industrial and infrastructural growth. In 1991, the government opened the economy because of the crisis of foreign exchange. It reduced tariffs from 80% to 25% on imported goods. Public sector undertakings were disinvested. Foreign Direct Investments were invited. All these efforts led to higher growth in the economy. 

9.An effort was made to bridge the gap of social division by making untouchability an offence. In 1955, the government made a Civil Protection Act whereby untouchability in any form was made a punishable Act. Later on, in 1989, the government enacted Scheduled Caste Scheduled Tribes Prevention of Atrocities Act whereby both these vulnerable communities were empowered. Residential schools were opened for the education of the children of SCs/STs. Scholarships were provided. To bring them into the mainstream, they were provided 15% and 7.5% reservation respectively in government jobs. Similarly, 84 seats were reserved for SCs and 47 seats were reserved for STs in the Lok Sabha. Similar reservations were provided in state assemblies. 

10.The government took steps to tackle food scarcity in India arising out of partition. It made a treaty with the US under PL 480 whereby cheap foods were imported from the US to feed the masses. In addition, the government launched the Green Revolution in the state of Punjab, Haryana and Western UP by introducing high yielding varieties of seeds, massive use of fertilisers and pesticides, provisions of irrigation, mechanisation of farming, consolidation of holdings , provisions of markets for the sale of agricultural produce and minimum support price. These measures transformed a food deficit India into a food exporting one.  

11. By the mix of military action and peace talks, the secessionist forces in the north east were subdued. Similarly, communists in Telangana were brought into the mainstream by participating in parliamentary elections. They shunned violence.  

12.In the First Five Year Plan, the focus was on the growth of agriculture. Agricultural sector grew by 4%. In the Second Plan, the emphasis was upon heavy industries. India established steel plants at Bokaro, Bhilai, Durgapur, Rourkela and Salem. Now it is the second largest steel producing country in the world after China. 

13.The government launched Sarv Shiksha Abhiyan (Universalisation of Education) in 2001. Earlier, the National Literacy Mission was launched in 1988 to achieve 75% literacy. The Mid day meal scheme was launched in 1995 which provided free lunches in school to improve enrollment and nutritions. The government enacted the right to education as a fundamental right for children aged between 6 to 14 years. In 2015, Beti Bachao Beti Padhao was launched to focus upon improving girl child education. The national education policy 2020 aimed at mother tongue education, vocational training and digital learning. Digital India education initiative was launched in 2015 to promote online education and digital literacy. Efforts of the government bore fruit. Literacy rates increased from 18.3% in 1951 to 77.7% in 2022. The female literacy of 8.9% in 1951 went to 70% in 2022. Gross enrollment ratio in primary education is now over 95% . However, there is a regional disparity in the literacy rate. While Kerala has the highest literacy rate of 96%, Bihar has only 61.8%. There is a gender gap in female literacy while male literacy is 84%, female literacy is 70%. Moreover, dropout rates are very much prevalent in SCs/STs students in secondary and higher secondary schools. 

14. The government initiated non-alignment in matters relating to foreign affairs. It did not align with either of the blocks and embarked upon an independent policy based upon merit. The basis of India’s foreign policy is Panchsheel which comprises mutual respect for territorial integrity and sovereignty, non-aggression, non-interference in internal affairs, equality and mutual benefit and peaceful coexistence. India stands for multipolar world order instead of aligning with one block. It supports multilateralism through the UN, WTO, BRICS, G-20, SCO and QUAD. In short, India aims to become a dominant power in the 21st century. 

Conclusion

1. Primordial loyalties like caste based social hierarchy, religious divisions, regional disparities, linguistic chauvinism , ethnic strife, and stiff competition among sects are stumbling blocks to national integration. In spite of the government efforts, the caste system did not weaken. While the vertical caste system dismantled, horizontal caste solidarity is on the rise. Different Plans and NITI Ayog so far failed to curb regional disparities so much so that the per capita income of Bihar is ten times less than that of Goa. While, southern and western states have progressed at fast speed, the northern and eastern states like Bihar, UP, Jharkhand, Odisha, Madhya Pradesh and North Eastern states are lagging far behind. The government has been successful by carving out linguistic states but still there are certain pockets in India which clamour again for separate states on the basis of language. Moreover, Southern states are dead against the imposition of Hindi and three language formulas. The ethnic striving is still on the rise. An example is the ongoing violence between Meitei and Kuki tribes. Similarly, Bodos are at loggerheads with Assamese. 

2. Religious divisions between Hindus and Muslims are on the rise. Mob lynching of Muslim religious community has become the frequent occurrences . Political participation of minority communities and specially Muslims are on the wane because of the rise of Hindutva ideology. 

2.Different sects have no love lost among them. So Shia, Sunni, Ahmadiya, Barelvi, Deobandi, Bohras are jockeying for power and prestige within their religious denominations. Similarly, Vaishnavas Shaivas, Shaktas, Smarths and Nathpanthis are trying to get upper hand in power, pelf and prestige within the Hindu religion. It is therefore imperative that religious harmony and ethos of secularism are strengthened. Regional imbalances are reduced. Cultural tolerance and multilingualism are promoted. Awareness programmes should be launched to combat fake news propaganda, hate speech, rumours meant to divide the society. Stringent actions should be taken against hooligans and bad elements who are bent upon perpetuating disinformation in the society.  

How can India overtake China in Economic development?

 Why is it in the news ?

1.The Union Budget 2025-26, comprises total expenditure of ₹50.65 Lakh crore. The capital expenditure  constitutes ₹11.21 lakh crore, while revenue expenditure includes ₹39.44 lakh crore. The revenue expenditure encompasses the operational expenses of the government including salaries, subsidies, interest payment and other routine expenditures. These are consumption expenditures of the government. In the 2025-26 budget, the government extended the threshold tax free income to ₹12 lakh. In addition, the salaried class would get ₹75 thousand standard deductions. Thus, those individuals who are earning ₹12 lakh 75 thousand annually would get a tax benefit of ₹80 thousand. Similarly, those who are earning ₹24 lakh, they will get the tax benefit of ₹1 lakh 10 thousand. These tax rebates on personal income tax are intended to boost private consumption and increase the disposable income of 30 million individuals to create demands in the economy. In the process, the government lost 1 lakh crore rupees as tax revenue. 

2.There are four sources of expenditures that increase demand in the economy. These are private consumption, private investment, government expenditure for consumption and investment and finally net exports of goods and services. It is to be noted that compared to investment the multiplier effect rising from increased consumption is much weaker. For example, if income increases, the consumption also increases but it is not sure that the more the increase in consumption would lead to increases in income. Thus, it is imperative that our approach should be on investment led growth rather than on consumption led growth. 

Status of the economies of India and China between 1960 to  2023

1.According to the World Bank, in 1964, the GDP of China was $59 billion followed by $56 billion of India. In 2023, India’s GDP was $3.5 trillion, while Chinese GDP went to $17 trillion. Between 1960 to 1980, the per capita income of India was bigger than that of China, while India had $271 per capita income, China had only $194 per capita income. 

India is set to achieve an addition of  $383 billion in 2025 in its GDP while China in spite of the low growth of 4.5% is to add $1.26 trillion dollar to its GDP during the same period because of the big scale of its economy. It is expected by the IMF that by 2029. The GDP of China would cross $24.6 trillion while India would achieve $6.3 trillion, thereby, the Chinese economy becoming almost 4 times larger than the Indian economy.  In the early 90s, the per capita income of India and China were almost the same, the average per capita income of Indian and Chinese was 1.5% of the average income of an American. In 2023, the per capita income of China has grown 5 times as high as Indians. In PPP terms, it was 2.4 times more for Chinese. So, GDP per capita in 2023 was $2481 for average Indians and $12614 for average Chinese.

How China surpassed India ahead? 

1.China came under communist rule in 1949. It patterned its economy on the Soviet model. It laid stress upon heavy industries and collectivisation under the central command. After getting independence  in 1947, India embarked upon a mixed economy whereby the public sector enterprises were to achieve the commanding heights of the economy. The economy was regulated so much so that license-permit-quota raj pervaded all the economic activities. This stifled the growth of the economy. Most of the public sector enterprises started incurring losses in 1980’s. 

2.In 1978, Deng-Xiao-Ping initiated economic reforms in China whereby foreign companies and firms were permitted to operate in China. Thus, the Chinese economy opened up. China was converted from a socialist controlled economy to socialist market economy. Huge amount of foreign direct investment came into China. By 1994 nearly $100 billion reached China as FDI and it was 18% of the total fixed investment. This foreign money built factories, created jobs, linked China to international markets and led to important transfers of technology. Economic liberalisation boosted exports. The export rose to 19% a year during 1981-94. Strong export growth in turn fuelled productivity growth in domestic industries. Thus, strong productive growth spurred by market oriented reforms was the leading cause of China’s unprecedented economic performances. 

The productivity of the agriculture sector further increased. For example, the yield of rice was 7.15 tons per hectare, wheat was 5.91 tons per hectare, cotton was 2154 tons per hectare against India’s 4.12 tons per hectare for rice, 3.56 tons per hectare for wheat, 499 kg per hectare for cotton. 

3. De-collectivisation was started whereby farmers were given autonomy to sell their produce in the market. Special economic zones were created to boost exports. This zone enjoyed tax breaks, less regulation, better infrastructure, and huge foreign direct investment flowed into China.

4.In 1991, India opened its economy. License-permit- quota raj ended. The policy of liberalisation and privatisation started. An effort was made to integrate the Indian economy with the global economy. Custom duties were reduced from 80% to 25% on goods and services imported from foreign countries. China focused upon export led growth. There was less hurdle to pursue economic reforms on account of one party rule. 

5.On the other hand India suffered because of bureaucratic hurdles, coalition governments and different parties pulling in different directions.  

The export-led growth supported by huge amounts of foreign direct investments made China a world factory. This is why manufacturing constitutes 30% of the GDP of China. India could not advance in the manufacturing sector like China in spite of its efforts to Make in India initiative and production linked initiatives. Manufacturing only constitutes 17% to the GDP of India. It not only creates jobs but also facilitates the transfer of technology, boosts exports, raises the standard of living and absorbs skilled and semi skilled labourers on a huge scale. 

6.China has over 44.3% saving rates of GDP in 2023. This higher saving rate allowed China to invest in businesses, industries, agriculture and  infrastructure. Compared to China, the gross savings rates of India as of March 2023 was 30.2% of GDP. Infrastructure in India also lagged behind China. This puts a high cost on logistics in India. 

7.This abrupt rise in the per capita income of the Chinese became possible because of huge investments. For example, in 1992, investment as a share of GDP was 39.1% in China, in India, it was 27.4%. 

8. By 2014, the investment rate rose to 45% to GDP in China but for India it was only 31.3%. In 2023, the investment rates were 42.3 % and 30.8% respectively for China and India. 

9. In contrast in 2023, consumption as a share of GDP was 60.3% in India compared to 39.1% in China. This is because the shares of government investments and consumption expenditure are relatively low. Moreover, India has always had a deficit in trade, having more imports of goods and services than exports, thereby causing reduction in domestic demands. Economic growth led by consumption is not only slower than investment led growth but it also aggravates inequalities  causing joblessness among people. 

10. According to the International Labour Organisation, China has consistently maintained a high labour force participation rate at 73%, in contrast to India’s 50% in 2022. Low labour participation is on account of decreased female labour participation in India which accounted for 24% in 2022. 

11. While India has always had a deficit trade whereby India imports more than it exports. India exported $770 billion and  imported $890 billion in 2022-23, China exported $1.2 trillion and imported $950 billion. Thus, it always has a surplus trade. 

12.The twin deficits of current account and fiscal makes imports costlier, weakens the value of rupee and thus, creates less demand in the Indian economy. 

What are ways out? What measures India can adopt to overtake the Chinese economy in the coming years?

1. Increasing investments in the economy. 

2. Reducing rate of consumption. 

3. Boosting exports 

4. Enhancing female labour force participation

5. Generating employment opportunity in manufacturing

6.Strengthening infrastructure to reduce the cost of logistics.

7. Fostering regional and international cooperation by expanding market access  not only domestically but in the international arena.

8. Emphasising education and skill development. 

9. Encouraging private businesses to invest more in the economy. 

Conclusion

India has vast potential to become the world power and surpass China in economic growth if it harnesses the cheap abundant labour force, incomes of  the rising middle class, transfer of technology , improves domestic institutional investments, increases wages and enhances competitiveness of the goods and services in the foreign market. To sum up, huge investments, not consumptions would lead India to make it a superpower and would surpass China in coming years.

Election Commission in India : Its functions. How to strengthen it ?

 Why is it in the news?

1.The President of India recently appointed Election Commissioner, Mr. Gyanesh Kumar as the Chief Election Commissioner and Dr. Vivek Joshi as Election Commissioner. 

2. The selection committee comprising the Prime Minister, the leader of opposition and the Home Minister selected the CEC and EC. However, the leader of opposition submitted a letter of dissent contending that since the Supreme Court was set to hear the appointment process challenging the removal of the Chief Justice of India as member of the selection committee under new law.  However, his dissent note was not taken into consideration and the President of India on the recommendation of the selection committee by the majority vote of 2:1, headed by the Prime Minister, appointed Mr Gyanesh Kumar as the Chief Election Commissioner with immediate effect. While the EC Mr Vivek Joshi was appointed with effect from the day he assumed charge of his office. 

3. In 2023, in the case of Anoop Barnawal vs Union of India, the Supreme Court held that the framers of India’s constitution had never intended to give the executive exclusive appointment powers with regard to CEC and ECs. It held that a selection committee comprising the Prime Minister, the leader of the opposition party in Lok Sabha and the Chief Justice of India would select CEC and ECs until Parliament enacted a law. 

4. The appointment process of CEC and ECs is to be heard by the Supreme Court in March. The court has to decide whether Parliament has the legal authority to override or modify a judgement of a constitution bench through legislation or by promulgating an ordinance. The Supreme Court has also assured the petitioner that the consequences of the court’s decision on the validity of the new Act would apply even if appointment was made in the interim. 

How are the Chief Election Commissioner and Election Commissioners appointed? 

1.CEC is appointed under article 324 of our constitution. Until 1989, there was a single member election commission when the Central Government appointed two other ECs. But the United Front Government cancelled the appointments of ECs and reduced the election commission to a single member body as earlier. But in 1993, the Congress government again made the election commission as 3 member body consisting of CEC and two ECs. 

2. Before the new Act, of 2023,  relating to the appointment conditions of services and terms of office of CEC and ECs, the President appointed the CEC and ECs on the advice of the cabinet headed by the Prime Minister. Incumbent CEC was succeeded by the next senior most EC. 

3. After the new Act, the procedure is to establish a search committee headed by the law minister and two senior officers of the rank of secretaries who are to shortlist five candidates. These shortlisted candidates are sent to a selection committee headed by the Prime Minister, the leader of opposition and a minister nominated by the Prime Minister. Thus, the Chief Justice of India as a member of the selection committee was removed and in his place a nominated minister by the Prime Minister put in place to make the selection committee having the majority of 2:1 for the government. However, the selection committee has power to consider names outside the shortlisted five candidates. 

4. According to section 5 of the Act, the CEC and ECs should have held the rank of secretary to the Government of India; shall be a person of integrity : have knowledge of and experience in management and conduct of elections. 

5. The new Act specifies the terms of service of CEC and ECs. They are not eligible for re-appointment. Where an election commissioner is appointed as CEC, his term of office shall not be more than 6 years in aggregate as the EC and CEC. 

6. CEC can be removed from his post only through the process of impeachment by the Parliament by special majority. However, ECs can be removed by the President of India only on the recommendation of CEC. But it is not mandatory for the President to accept the recommendation of CEC. For example, during the UPA Government, the CEC recommended the removal of EC Naveen Chawla but the President did not accept his advice. 

7.Salaries and allowances of CEC and ECs cannot be varied to their disadvantages during the term of their offices. CEC and ECs enjoy the rank of the judge of the Supreme Court. 

Functions of the Election Commission

The functions and powers of the EC of India are : 

1.  Conduct of the election of the Lok Sabha, Rajya Sabha, State Legislatures, the President and the Vice President of India. 

2.  It prepares and revises electoral rolls and registers all eligible voters. 

3. It grants recognition to the various political parties and allocates them election symbols. 

4. It has also power to advise the President in matters relating to the disqualifications of MPs and MLAs.

5. It issues the model code of conduct during elections for political parties so that no one indulges in unfair practice or there is no arbitrary use of powers. 

6. It notifies dates of election

7. It determines the territorial areas of each constituency on the recommendation of the delimitation commission.

8. It cancels polls in case of booth capturing, rigging, violence and other irregularities. 

9. It advises the President as to when the election can be held in a state which is under the President’s rule. If it is not sure to conduct free and fair elections, it may recommend to the President for the extension of the President’s rule in that state. 

10. It registers political parties and grants them the status of national or state political parties. 

11. It promotes voter awareness and increases voter’s participation. 

12. To sum up, ECI is vested with the power to superintend and control elections in India. However, it is not entrusted with the elections of municipal corporations or Panchayat bodies. Elections of these bodies are conducted by the State Election Commission. 

 

How will the Election Commission be strengthened ?

1. The new Act of 2023 has given overriding power to the President in selecting CEC and ECs. There is need to make the selection process of CEC and ECs more transparent by including the PM, the leader of opposition of Lok Sabha and Rajya Sabha, Chief Justice of India and a Cabinet Minister so that the executive or the Government of the day must not have absolute power with regard to the selection of CEC and ECs. 

2. There is a need to give equal protection to ECs and CEC. While CEC can only be removed through impeachment by both Houses of Parliament with special majority, ECs can be removed by the President on the recommendation of CEC. ECs should also be removed only by the process of impeachment by the Parliament with special majority. This would give ECs more independence in their functioning. 

3. Model code of conduct should be incorporated into election laws so that its violations can be dealt with sternly. 

4.  ECI should have more teeth to deal with criminalization of politics.

5. More election tribunals should be established for the quick disposal of election related cases. 

6. The ECI should collaborate with tech companies to track and remove fake news affecting elections. 

7. There is a need to implement state funding of elections so that the dependence on corporate donations is reduced. 

8. The ECI should ensure that there should be a level playing field both for ruling and opposition parties. 

9. The ECI should ensure that corruption, muscle power, bribery and wealth power do not come into play to give a candidate a winning edge. 

10.  It should also ensure that no parliamentary or legislative constituency go uncontested as it happened in the case of Surat in the last Parliamentary election 2024. 

11. The ECI must ensure that there should not be discrepancy between votes polled and counted as happened in the case of recently held legislative election in Maharashtra. 

Conclusion

1. The ECI is one of the pillars of robust democracy. The strength of democracy depends upon the effective conduct of elections. It is the bounden duty of ECI to ensure transparent, credible and violence free elections throughout India.