Making Neo Liberalism Work for Poor in India.

The pro-liberalizers predicted two things: first, a dramatic breakthrough in growth rates, and second, a steady decline in the fiscal deficit. The neoliberals always insist on cutting the fiscal deficit because they want to reduce capital expenditure by the state. This has been a big mistake in the Indian context. Around the world, the reality is that neoliberalism does not bring an expansion of high productivity-and therefore high-wage-jobs. The farm crisis in India is acute. Under the dictums of neoliberalism, sometimes called globalization, India has opened its agricultural sector to foreign, mostly U.S. imports. Grains and cotton come into India at below market prices. Total capital formation in agriculture continues to stagnate in India in real terms, with sharply reducing public investment not being compensated adequately by rising private investment (Utsa Patnaik, 2006).
The adoption of newer terminology such as inclusive growth is basically an attempt to democratic deceit to facilitate the survival and extension of new-liberal policies by stealth. Social exclusion can only increase in such a framework, especially in the sense of marginal, uncertain and occasional inclusion in the market prices on unfair terms, leading to further worsening of income distribution (Alternative Economic Survey 2007-08)
The imbalance between the structure of overall demand with a large tilt in favor of goods and the aggregate supply tilting in favor of services is widening as the services sector continues to increase both its relative and absolute share. It is the supply side and the marketing machinations under the grab of free markets that are pushing up the prices.
India now uses more of imported manufactured goods than the domestically manufactured goods and the export of manufactured goods from India fails to act as a compensating factor. India seems to be becoming the accounts office of the world. The post liberalization years the country has witnessed an investment growth asymmetry that flows from a combination of services intensive growth pattern and a manufacturing intensive investment pattern.
In a country in which the people controlling the corporate sector number under one percent of the population but control a share of GDP larger than that contributed by the entire agricultural sector supporting about 60% of the population. 53% of Indian children under five (about 67 million) in India are without access to basic healthcare. According to UNICEF, out of 9.7 million children who die before the age of five, as many as 21% are in India. In terms of all the manor conventional development indicators, India ranks lower than the average for the Third World countries taken as a whole (Human Development Report 2007-08)
If we are to get the best out of globalisation and avoid the worst, we must learn how to govern better at the local and national levels, and to govern better together at the international level