Opinion Tapping into the janta’s pulse: How BJP’s welfare model has undone the faults of Nehruvian socialism

Post Independence, India, under the leadership of its first Prime Minister, Jawaharlal Nehru, adopted a socialist-inspired economic model. This approach emphasised state-led industrialisation, central planning, and a mixed economy. Nehru’s vision was rooted in the belief that rapid industrialisation and a strong public sector through licence raj were essential for building a new nation of elites.

Despite his good intentions, Nehru’s plan had adverse impacts on India’s economic growth and societal welfare. Characterised by substantial state intervention, licence raj and an emphasis on heavy industries, it resulted in a sluggish economic growth rate of about 2.1 per cent per year. This approach caused widespread poverty, illiteracy, and malnutrition, with India witnessing a marked increase in poverty levels. This model neglected agriculture and small industries, leading to unbalanced economic development and a stifling of innovation due to the state’s control over key sectors. The Nehruvian focus missed opportunities in global trade and manufacturing, potentially hindering India from becoming a significant global economic power. This period was also marred by issues like economic disparity, corruption, and policy failures, further impeding India’s progress.

Nehruvian socialism was a major impediment to India’s success and prosperity, limiting its potential in various sectors and contributing to ongoing societal challenges.

Transition to liberalisation

Nehruvian socialism led India to the brink of economic collapse, with the Reserve Bank of India having to pledge 46.91 tonnes of gold to the Bank of England and the Bank of Japan to keep the economy afloat.

The late 20th century marked a pivotal turn with the gradual shift towards economic liberalisation. This shift was necessitated by a range of factors, including fiscal deficits, foreign exchange crises, and the need for better integration with the global economy. The 1991 economic reforms, spearheaded by then Prime Minister P V Narasimha Rao, played a crucial role in India’s transition from a closed economy to a more market-oriented one.

Rise of competitive welfarism

In the 21st century, India’s political ideology has shifted significantly towards competitive welfarism, an approach strongly advocated by the Bharatiya Janata Party. This model synergises market-friendly policies with focused welfare programmes to elevate underprivileged communities and stimulate economic growth.

Notable initiatives such as Make in India aim to boost manufacturing’s GDP share to 25 per cent by 2022, creating 100 million jobs. The 2017 Goods and Services Tax (GST) reform, unifying India’s market, has seen GST registrations increase to approximately 1.4 crore with an 11 per cent yearly rise in GST collections. Welfare schemes like the Pradhan Mantri Jan Dhan Yojana have significantly impacted financial inclusion, amassing over 50 crore accounts with deposits exceeding Rs 2 lakh crore, and digital transactions escalating from 1,471 crore in FY 17-18 to 11,394 crore in FY 22-23. With 40 crore houses under the Pradhan Mantri Gramin Awas Yojna, and Pradhan Mantri Ujjwala Yojana, significant strides in affordable housing, and providing LPG connections have been made, profoundly impacting the lives of India’s marginalised communities.

Impact on Indian elections

The recent ideological shift towards competitive welfarism in Indian politics, characterised by an emphasis on welfare schemes, has significantly influenced electoral outcomes. This shift is evident in the BJP’s strategic focus on welfare initiatives, contributing to its victories in the 2014 and 2019 general elections. The BJP’s recent triumph in state elections and its growing vote share in regions like Telangana underscore this trend. On the other hand, opposition parties, particularly the Congress, have faced continual setbacks since 2014, struggling to match the electoral appeal of the BJP’s welfare-oriented and developmental policies. This evolving political landscape, with welfare schemes at its core, continues to redefine election strategies and voter preferences across India.

Evidently, Bharat no longer votes for divisive politics; it votes for development, it votes for its aspirations.

The transformation from Nehruvian socialism to competitive welfarism marks a pivotal shift in India’s political landscape, displaying its adaptability to the evolving aspirations and needs of its diverse population. This ideological evolution, blending economic liberalisation with a strong emphasis on social welfare, underlines the dynamic nature of Indian politics. It highlights how political strategies and ideologies are continuously reshaped to align with the democratic ethos and developmental goals of the nation. As India forges ahead, this interplay of varied political ideologies, balancing economic growth and social equity, will remain integral to its democratic journey and policymaking process.

The writer is policy consultant to the Minister of State for Communications Devusinh Chauhan and member, BJYM National Policy, research and training team