1. BOOK REVIEW
INDIA
UNBOUND
BY
GURCHARAN
DAS
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2. • “A ringside view of the
WHAT OTHERS SAY
economic and social
transformation of a
nation…..”
• “One of the most readable
and insightful books to
appear on India’s torturous
economic path”
• “Describes India’s economic
policies analytically, logically
and vividly.”
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3. Part One:
CONTENTS IN THE BOOK Our Spring of Hope ( 1942-
1965)
Part Two:
The Lost Generations ( 1966-
1991)
Part Three:
The Rebirth of Dreams
( 1991-1999)
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4. THE PRE
-INDEPENDENCE
STORY
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5. • RICH INDIA
INDIAN GLORY • Columbus went in quest of
riches in India and
discovered America
• India’s wealth lured all
• Golconda was famous for
its diamonds
• Vasco Da Gama was sent to
find India
• English came much later
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6. • India was well developed in
comparison with Western
INDIAN GLORY
economies
• Annual revenues of Aurangzeb
were ten times that of his
contemporary Louis XIV
• Accumulated a wealth of more
than a one and half billion
dollars
• Spent this money on
development of monuments
like Taj Mahal
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7. • India produced world’s best
cotton yarn and textiles
INDIAN GLORY • Exports were half of the output
• Controlled a quarter of the
world’s textile trade
• Changed dressing habits of
Europeans and replaced woolen
clothes
• More than a fifth of the world’s
wealth
• Well developed banking systems
• Bills of exchange were honoured
throughout Asia
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8. SO WHAT WENT WRONG ?
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9. • Britain taxed the Indian
farmer heavily
BRITISH RULE IN INDIA
• Transferred surplus back
home to finance its own
deficit
• 8% of GNP was transferred to
Britain every year
• Financed Industrial
revolution back home
• In 1830, share of Industrial
production was 17.6 % which
declined to 1.7% by 1900
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10. • Industrial revolution
WAS BRITISH RULE THE
ONLY PROBLEM? destroyed Indian textile
industry
• Indian industrialists were
not allowed to set up
modern mills
• Indian social system also
contributed to its problems
• Indian superstitions,
beliefs, indiscipline
contributed equally
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11. THE GREAT PARADOX
By 1914,
• India had the largest
jute manufacturing
factory
•Fourth largest cotton
textile industry
•Largest canal
network
•Third largest railway
network
•2.5% of the world
trade
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12. TEAMWORK
DIVIDED WE FALL
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13. • CASTE
CASTE AWAY • Four main layers in Indian
system
• Traditionally not accorded
a high place to the making
of money
• System created inability to
non cooperate
• The “Brahmanical”
advantage
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14. STORY POST 1947 TO 1991
INDIA BECOMES FREE
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15. • Inspired by communist
FREE INDIA Russia than capitalist
America
• Influence of socialism
• Did not trust private
entrepreneurs
• Decided to create the state
as a business house
• Experienced an agricultural
revolution
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16. • The six wrongs
Choosing the wrong path 1. Adopted an Import
substituting path
2. Set up inefficient PSUs
3. Overregulated the private
enterprise
4. Discouraged foreign capital
5. Pampered organized labour
6. Ignored education
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17. • In 1960, our per capita income
was more than China, now it is
THE EFFECTS
half
• Half Indians are poor by
international standards
• Four out of Ten Indians are
illiterate
• India is ranked 134th out of 174
on the UN Development
Program’s Human Development
Index
• Our failure came less from
ideology and more from poor
management
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18. SECOND LIFE…. POST 1991
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19. • THE GOLDEN SUMMER OF
1991
MEN BEHIND WHEELS
• Economic revolution
• Dismantled license raj
• Free import controls
• Opened country to foreign
investment
• Privatised banking, airlines,
power, petroleum, telecom,
postal sectors
• Tax rates came down
• Set up Foreign Investment
Proposal Board
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20. NEW MONEY
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21. • INFOSYS
NEW MONEY • Started by 6 engineers with
Rs.10,000
• More than $ 15 billion today
• ZEE GROUP
• Started by Subhash Chandra,
a grain Trader from Haryana
• Pioneered laminated tubes
• Entertainment business with
Esselworld
• Entered Cable business first
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22. • ARMEDIA
NEW MONEY • Started by engineer
working with Intel
• Started own firm in
Bangalore
• In two years, sold to
Broadcom for more than
Rs.300 cr
• RAMESH CHAUHAN
• Sold Thums Up to Coke for
more than 180 cr
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23. OLD MONEY
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24. • Owned and managed by a
OLD MONEY family as a joint family
• “Haveli ki umar saath saal”
• The story of Buddenbrooks
• Professionally managed
companies respond better
to challenges and decision
making
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25. • Our great strength is our
people, weakness is
A NEW COUNTRY
government and hope is
internet
• Our rich country became poor
and would become rich again
• We are powered by an “ICE”
age
• We missed the industrial
revolution but have caught the
information revolution
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26. • Unleash human capital through
education
A NEW COUNTRY
• Creation of middle class means
success for India
• New India is on competition
and decentralisation
• Majority of Indians in the 21st
century would be freer and
prosperous than their parents
and grandparents
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27. • “India is an elephant and has
begun to lumber and move
A NEW COUNTRY
ahead. It will never have speed
but will always have stamina.
The elephant is the wisest of
animals/the only one who
remembers his former lives and
remains motionless of time
meditating. India will have a
more stable, peaceful and
negotiated transition than, say,
China”
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28. THANK YOU!
Book review Based on
“India Unbound” by
Gurcharan Das
Pankaj Muthe Mail me on
muthep@gmail.com