Should Indian Shift being Socialist Economy to a Capitalist Economy
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CAPITALISM - An Economic and political system in which a country's trade and industry are controlled by private owners for profits, rather than by the government
• In capitalist countries, everyone has the freedom to start their own business. These Businesses work independently from each other. They compete with each other leads to innovation
SOCIALISM - An economic and political system where the government regulates how a business is run and spreads the wealth evenly
• socialism creates equality and provides security. A worker’s value comes from the amount of time they work, not in the value of what they produce So, for the last few years, India is a socialist economy because India's first prime minister Nehru believed in socialism inspired by USSR Soviet Union Lenin introduced the new economic policy in 1921, he said a state should hold everything in the economy Means the government should have absolute control over the market and economy. The Market had no role to play in it. Everything was nationalized. But in 1991 Soviet Union itself couldn't survive its own model. And in India, other hand, the Tata airlines which were later changed into Air India got nationalized because the government wants total control over the market and economy. but the so-called socialism got failed because of corruption, more power to the politicians, no competition so no innovation. Even Karl max agreed that in socialist countries there will be no better innovation and competitiveness but socialism is for the betterment of people's life by providing equal importance to every citizen. in India between 1947 to 1990 licenses were required to start or run a business and getting a license is very difficult for people of the middle class or lower-middle-class so this killed innovation in India. in 1990 PVR government with Manmohan Singh as finance minister removed the license raja system. Industrial licensing was abolished for almost all product categories, except for alcohol, tobacco, hazardous chemicals, industrial explosives, electronics, aerospace, and pharmaceuticals. which helped India to move forward towards India and now Modi government is taking so many steps to ease the business in India like MAKE IN INDIA. he encouraged Indian youth to come forward for becoming an active part of the startup ecosystem of India On another hand in capitalism has its own limitations like inequality in receiving the resources like food, healthcare, education. Monopoly power to the successful firms that enable charge higher prices to consumers. Monopsony is market power in employing factors of production firms can have monopsony power in employing workers and paying lower wages.
so, no country in the world can survive on a purely capitalist or a purely socialist framework. And in both socialist and capitalist countries have positive and negative sides so rather being the shift from a socialist country to capitalist countries we should have a mixed economic framework.
Privatization: The process of transferring government assets to private individuals
is called privatization
Nationalization: The process of transferring private assets to the government is
called nationalization
so, we can achieve a perfect mixed economy where the government controlling
or nationalizing the firms
1. where the sole purpose of the firm is to provide service to people like
POLICE, EDUCATION, HEALTHCARE
2. where the High chance of forming monopoly like Railway, mineral
production companies, metros
Along with that we also need to private companies or should be privatized
companies
1. Where competition is needed,
2. where innovation is needed,
3. where we want to save taxpayers money
4. where we want to improve maintenance
CONCLUSION:
India is shifting from a socialist country to capitalism but we need a mixed economy where some companies should be under government and some should be led by private individuals. but both the private and government firms should be regulated so that country gets the maximum out of it
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