What’s the news?

• The op-ed acknowledges India’s technological achievements, emphasizing the need to revive state support, particularly in emerging sectors. It underscores the urgency of addressing persistent inequalities and promoting inclusive economic growth for a more prosperous future.

Central idea

• Aim for the moon is often synonymous with bold ambition, verging on recklessness. India’s foray into space research in the 1960s was initially met with skepticism, given its status as a young and struggling nation. Today, India boasts remarkable achievements in space exploration. However, these accomplishments raise a pertinent question: How do these feats align with the persistent poverty and destitution afflicting millions of Indians?

Historical Foundations of India’s Scientific and Technological Capabilities

• Indian Institutes of Technology (IITs): Between 1951 and 1961, India founded five Indian Institutes of Technology. These institutions rapidly gained global recognition as centers of academic excellence. They played a critical role in nurturing a talent pool of engineers and scientists who would later contribute to India’s technological advancements.
• Indian Institutes of Management (IIMs): In 1961, India inaugurated the first two Indian Institutes of Management. These institutions aimed to foster managerial talent, aligning with India’s broader goals of building expertise and human capital in various fields.
• Public Sector Units (PSUs): Throughout the 1950s and 1960s, India established numerous public sector units across diverse industrial sectors. These sectors included steel production, fertilizer manufacturing, machine tools, electric machinery, drug production, and petrochemicals. These PSUs not only bolstered industrialization but also served as vital testing grounds for emerging technologies.

India’s Moonshot Development Strategy

• The moonshot development strategy aimed to leverage modern industrialization to address developmental challenges.
• Early visionaries like Vikram Sarabhai envisioned satellite technology for nationwide communication, agricultural improvements, and healthcare education.
• Nevertheless, this approach faced criticism for its heavy reliance on public investment and the alleged misdirection of resources toward capital- and technology-intensive industries instead of labor-intensive sectors.

How have inequalities posed significant hurdles to India’s progress and development?

• Lack of Effective Government Intervention:

• India’s development strategy’s lackluster record was not due to excessive government emphasis on technology but rather because the government could not effectively address inequalities and ensure social development.
• One of the missed opportunities was the failure to implement a successful program of land redistribution.

• Ownership Disparities: Ownership of assets remains significantly low among socially oppressed communities, including Dalits and the Scheduled Caste (SC) population. This lack of asset ownership creates barriers to accessing education and economic opportunities.
• Education Underinvestment: India has consistently underinvested in basic education for the masses. This educational deficit further exacerbates inequalities and limits opportunities for those who are socioeconomically disadvantaged.
• Replicated Inequalities in the Labor Market: The historical inequalities in social and economic spheres translate into labor market disparities. Better-paying jobs tend to be concentrated among privileged groups with greater access to higher education, further deepening the divide.
• Employment Disparities: The data from the Periodic Labour Force Survey highlights significant disparities in employment. In 2021–22, a higher percentage of SC workers (38.2%) were engaged in casual employment, which often involves manual labor, compared to workers from other general category castes (11.2%).
• Contrast with East Asian Countries: East Asian countries like Japan and China implemented land reforms and other measures in the 1950s that created a relatively egalitarian social structure. This laid the foundation for progressive economic and social changes in the subsequent years.
• Impact on Industrial and Economic Growth: Inequalities have negatively impacted industrial and economic growth in India. The skewed domestic demand, driven by the upper-income classes, has hindered the growth of manufacturing sectors producing high-quality, mass-consumption goods like food products and garments.
• Narrow Social Base for Entrepreneurship: Entrepreneurship in India has emerged from a narrow social base, limiting the diversity and inclusivity of the entrepreneurial ecosystem.

Way forward

• Reinstate state support:

• India should recognize the strengths and weaknesses of its post-independence development strategy.
• The audacious attempt to build technological and industrial capabilities with generous state support was the right approach.
• India must reinstate such efforts, especially in rapidly growing economic sectors like semiconductors and biotechnology.
• Abandoning industrial policy in a globalized economy, as done after 1991, is a mistake, especially when countries like the United States and China actively support their industries.

• Make Economic Growth Inclusive:

• India needs to redouble efforts to ensure that economic growth is inclusive and broad-based.
• Access to education, particularly higher education, should be made accessible to all, including marginalized communities.

• Strengthen human and social capabilities:

• While technology has played a significant role in India’s development, it’s equally important to focus on building human and social capabilities.
• Empowering the billion-strong population with the skills and capabilities required for upward mobility is crucial.
• Achieving this would be equivalent to a significant leap in economic progress.

Conclusion

• India’s journey toward technological prowess should coexist with a commitment to alleviate inequality and ensure inclusive growth. A moonshot approach to development, grounded in state support for technological advancement, is imperative. By reconciling these objectives, India can pave the way for a prosperous and equitable future.

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