In the previous part I gave an brief overview about why global capital is moving against the Indian state. In this article I will elaborate a bit more.

Indian state is a creation of British empire. In Asia, British India was second best place after Japan. The best things of Britain was always available in British India. Contrary to the claims of Indian Nationalists, Britain has built many things in India. Today’s India is run on those British built institutions. The education system which they follow is a thing of British Empire. All the things related to power structure from judiciary to civil service to law, they are creation of British. All the major metro cities also creation of British Empireincluding the capital so is the rail network, road network etc. Republic India inherited those all and so India was ahead of other parts of third world back then. So, it apparently looked a big thing. Plus Soviet Union was always ready with unlimited aid and helped in every sector from military to defense. But as time passes by, others have gone ahead. Today, only sub-Saharan Africa and war-torn regions lags behind India. Everyone is ahead. So it seems India was fortunate in circumstances contrary to what they boasts about. Indian space and nuclear program too is a Soviet gift itself.

Indian economy was run at the system of License-Permit Raj. These system required licenses and permits in everything, from buying a scooter to opening a shop etc. This processes involved bureaucratic hassle on epic scale which often took decades after decades. Private enterprises were curbed, so ruling baniya classes could retain monopoly. State completely decided the amount of production, number of workers hired, price etc. Foreign capital was blocked. India completely ran on a closed auktarkic economy cut off from the global economy and supply chain. It may be noted that socialist countries adopted closed command  economy due to sanctions while India did it deliberately to protect its pre-capitalist system. Plus the bureaucratic and judiciary classesalso wanted to have their cake too. So they set-up a predatory system which only benefits them by making processes lengthy, strenuous and confusing. Corruption was normalized.Living standards were bottom low, economy ran on scarcity and ‘Hindu Rate of Growth’. Government jobs were only jobs available, private jobs were miniscule, entrepreneurship was shunned and most people involved in seasonal agriculture. Poverty was the most common thing. With generous Soviet patronage, this system ran despite being utter dysfunctional.

But this didn’t go well for too long. Soviet Union ceased to exists in 1991 and Indian State was verge of Bankruptcy in that year. Then with advise of IMF, the Indian state opened part of their economy and there was a global capital flow. Service sector flourished. So India skipped the industrialization phase and went from agriculture to service directly. But after 2008 economic collapse, that steam gradually run out. With the ascendance of Modi, the License Raj era is being brought back. This is seen in their war against foreign capital and cutting down any competition to ruling Gujarati and Rajasthani baniya classes. So Modi can be easily called Nehru 2.0.

Let’s analyze the current scenario. It’s a pre-capitalist country with an extremely tribal, irrational, feral, superstitious population who are unproductive. Majority populace lives in agriculture while it is the service sector that runs the economy. But the service sector was also a low-hanging fruit which also is dwindling.The system is set-up to disincentivise productivity, efficiency. Huge resources have been wastage since its foundation. India’s function in global supply chain was mainly about consuming cheap goods, it did not play much role in production. So, overall it has nothing much to offer to global capital.

Rather, Indian geopolitical ambition is at loggerheads with global capital. India sees South Asia and sometimes South East Asia as its backyard. It also seeks to expand in many other countries i.e. expansion of baniyadom everywhere. This also makes the relation one-sided. India plunders its productive coastal states to subsidize landlocked states yet the latter have absolute dominion over the former. Payment according to ability is stalled and quota, connections are given priority. Upper social mobility is curbed. Productive people are robbed.

Capitalists are not going to take this lightly. Firstly, they are in search of new production centers, so India’s geopolitical aim of controlling entire South Asia is a major blockade to this. For example Bangladesh has emerged as new production hub yet India is indulging incontinuous effort to undo this and establish baniya hegemony there and also preventing Bangladeshi products from entering Indian markets. India always prefer one-sided deals in which only they can benefit. So in a larger scale, India wants every country to be open for Indian produce but India to be closed. This is generating huge anger among capitalists too. Capital also want to try untapped potential of other South Asian countries, which is also contrary to Indian geopolitical aim. Capitalists will also seek to utilize and emancipate the productive elements of India which are robbed, milked, destroyed by the indian state. So they will maneuver the necessary geopolitical moves for that.

Ford’s flight, Elon Musk’s refusal to invest in India already showing many signs.

So, analyzing all the trends, events and scenarios it can be easily said that Global Capital vs Indian state conflict is coming up in the years to come.

Author: Purandhar Khilji