Jeff, USA

Economic liberalisation on existing terms will spell disaster.

Vish, UK

In the MNC controlled world the top 10% earners have become 70 times richer than the bottom 10%. 20 years ago they were only 34 times richer. In a country like India such a pattern of 'development' can be a complete disaster.
Economic liberalisation on existing terms will spell disaster. India will have to invent a novel economic means of raising the standard of its inhabitants without sacrificing the spirit of community and family values which the west has had to make for the sake of economic development.
Vish, UK

The Indian economy, at present is just trying to pull out of a recession which was not required. The amount of potential available in the country is not being used, the government services are not up to the mark and this calls for privatisation on a very large scale. The government should then oversee or check the way these private firms operate and keep them at a standard. India really needs to open it's economic doors to the rest of the world to allow it to implement and invest in new technology. Once this is done there will automatically be a rise in the employment levels.
Saahil Bains, UK

I believe that opening up the Indian economy will be the best move ever made by any government.
On a recent visit to India I was appalled at the difference between those sectors which had been opened for competition and those who were not. This was most obvious in the foreign exchange industry. The private company employees were much more aware of the customer's needs as compared to the same colonial attitude of the bank "babus".
Ashish Usman, USA

Fighting corruption and monopolies, allowing more free flow of goods and services will help India in the long run.

Juha Koivu, Canada

If the US economy does not give a hint to the Indian government of what its economy can be like, they must not want the average Indian citizen to prosper except through government channels, which stifle any form of economic growth. Fighting corruption and monopolies, allowing more free flow of goods and services will help India in the long run.
Juha Koivu, Canada

Opening up the economy seems to be the only reasonable way to improve India's notoriously inefficient service and public sector. One can already see the benefits of liberalisation today compared to 1991. However, policy makers will do well if they keep in mind the 'poor' who do not necessarily benefit or even lose initially. Liberalisation is must, African style SAP by IMF, world bank, NO.
Tridiv, Germany/India

The benefits of free trade have been proven by economic, as well as practical, experience. This move really will create more jobs that it threatens. One drawback is that the Indian government does not have a social safety net to properly support the workers in uncompetitive industries. However, for the next generation of Indians, now in their teens, the future will be much brighter, with cheaper and more plentiful goods and better, more interesting, and higher paying jobs.
Paul, Mexico

The multinational corporations invest in India because the return on capital employed is greater in India than is available in their domestic economies.

Mohan Singh, India

The permit-licence raj, run by the much-vilified inefficient bureaucrats and corrupt politicians, whom we all love to hate, in fact:
(a) engineered the green revolution in Punjab and Haryana; achieved food self-sufficiency; &, even started exporting food-grains;
(b) initiated the industrial revolution, particularly in Gujarat and Maharashtra;
(c) invested in establishing and maintaining educational centres of excellence such as the Indian Institutes of Technology, whose graduates are in the forefront of Information revolution that is sweeping South India, and who have made a significant contribution to the building of the international information superhighway;
(d) brought about a health revolution reducing infant mortality; &, increasing life expectancy to 65 years from 25 years on the eve of independence
The west's gift horse of opening up has to be investigated most thoroughly indeed before it can be accepted. The marginal improvements that liberalisation may bring about does not match the costs we have to incur in terms of eco-destruction & environmental degradation. The multinational corporations invest in India because the return on capital employed is greater in India than is available in their domestic economies. The extra price India has to pay in the way of excess return on foreign capital will only facilitate the transfer of India's resources to the rich west thereby, perpetuating the poverty of the underclass Indians.
Mohan Singh, India

I believe India's Economy should be opened. But the definition of open needs to be clear. India should be careful so that it doesn't have to dance to the tunes of large MNC's. We should ensure that Indian private sector also participates actively in this. The main problem with the Indian economy has been the license raj. Anything and everything requires a license. This led to lots of unnecessary paperwork and kickbacks or bribes. All the laws need to be amended so that the administration can become more transparent. Projects that come up for approval should cleared or rejected within a reasonable time frame. If this is the goal of opening the economy, then it should it opened up.
The insurance sector has been a controlled by 2-3 public sector companies with the worst ever service that can be imagined. These companies have been over staffed and handled in such a arbitrary fashion that an average Indian hates to go the insurance office. I hope the situation changes for the better.
Parvez, USA

Country like India will not be successful economically, until the people and government solve internal political instability, where dozens of nationalities are fighting for their freedom and fair share in the society.
Rahman .B, Bangladesh

Unfortunately, we are doing this in a half hearted fashion. We need to press on full speed ahead - even though it will be painful in the short to medium term.
Deepak Grover, U.K

In response to Srikanth Pradhan, USA: There are much bigger crocodiles on the outside just itching to get in and eat up India's labour and primary resources for their own advantage!
David Baynes, Canada

It is always better to be cautious and think before opening up the economy. It is certainly rational to plan and protect. But protecting ineffeciency, corruption, lethargy will not help. I look forward to better insurance policies and banking services. We as Indian customers have suffered a lot in the hands of public sector babus. It is high time they saw what "service" means.
Anshuman, Germany

South Korea's (and Taiwan's) strong economic performance wasn't based on free trade, at least not initially. Rather it was characterised by rigid economic planning by governments, which initially subsidised exports heavily to give them an overseas market, reducing these subsidies as rich country consumers began to identify with brand names and the quality of Korean or Taiwanese goods. In the same way, their home economies only pulled down trade barriers as domestic goods became competitive. The only 'developing country' that has become wealthy since World War 2 through pure market liberalisation seems to be Hong Kong, which is a special case.
Matthew, Scotland

The economy should not be completely opened. It should be partially lifted and Indian industries should be well protected. If foreign companies suspend trade on the directions from their respective nations. India will become next Pakistan. So to prevent this economic blackmail, the economy should be opened up, giving encouragement to indigenous business.
Amit, India

Competition will force Indian industries to have better products for the thriving Indian middle class and stimulate the economy.

Trikam Patel, U.S.A.

The leftist policy was a conspiracy by certain vested interest big business groups to have only their products in the Indian market. They scared Indian public of capitalistic invasion and therefore we saw the same Ambassadors or Bajajs for many years on the Indian roads. Competition will force Indian industries to have better products for the thriving Indian middle class and stimulate the economy. If communist China can open up why not India? If Coke could not beat Thumsup why worry?
Trikam Patel, U.S.A.

Indian economy is stable just because its agriculture sector is doing good. Reforms should be very much oriented towards the agriculture sector. If you try to cut subsidies for poor and illiterate farmers the country will be in deep trouble. When farmers suffer India suffers. The people who sit in towns and other countries will never understand what is India's soul. If no steps are taken 50% of India will not have drinking water after 15 years. Our ancestors survived because the socialist policies of the government.
Mahesh Rao, USA

Sure, India needs to open up its economy, but care should be taken about agriculture and small scale industries. I don't know how much liberalisation will help but it will improve the quality of work by government offices which tend to be very slow.
Ashutosh Gandhi, USA

Gradual opening of those economic frontiers in which we are ready to compete on equal terms is fine. But, to throw open the entire frontier of economy, would be foolish. With a stable government India should be ready at all fronts in about five years. Until then, the West will have to wait ! Otherwise they will leave us like the Banana Republics of Asia Africa and Arab nations.
Sridhar, USA

Yes, by GOD! 45 years of Socialism have brought this great country to her knees. The economy should never have closed up in the first place.
Tarun Pall, India

Opening up a poor feudal country's economy to market forces controlled by monstrous MNC'c with no compassion, is a blueprint to widen economic disparity's in India. For Indian leaders to consider this, as a panacea to the country's ills, is terribly misplaced.
Reuben Dharmaraj, USA

India's economy should be opened up but only as far as thinly disguised Western protectionism allows. It should never allow its comparative strengths in labour costs, for example, be compromised by the West's and particularly America's, attempts to link 'labour standards' to trade.
Jay Barua, USA

For a long time, the protected industries in India have been foisting inferior goods on its citizens at inflated prices. An increased competition from quality goods manufacturers from all over the world would force them to pay heed to the long-suffering Indian consumer. Give the Indian consumer a break and give him a better value for their hard-earned money. A word of caution, however: there has to be some sort of effective scrutiny that some unscrupulous entities (be they individuals or corporations) do not take the Indian consumer for a ride. The unshackled Indian enterprises would also benefit from the liberalisation. If they produce better-quality products of world-class calibre. They can sell these products beyond India's borders. economic betterment will serve India's interests well.
Vasant M. Joshi, USA

Yes India's economy definitely needs to be opened up. Nationalised sectors of the economy need to be opened up. At present the banking, telecom, airline and insurance sector are all government owned and very inefficient. Thus to improve efficiency there is a need to open these sectors and increase liberalisation as well. One major step is to reduce the endemic corruption in India.
Yohan Vaid, USA

The Left constitute an important part in the Indian political mechanism. If we are to go with the voter choice, India should open up in the service sector, for that is what both the BJP and Congress stood for. The Left's stand is based on planing and job for all, therefore they have the right to oppose. If the reforms do not take place now, they never will. The Congress is involved in negative politics and thus, the economy is likely to face some problems. On the other hand the Leftist stand is 'popular', that may or may not be in the benefit for the country. Opening the service sector is going to create more jobs after a mild recession, but soon this will be compensated, as the service industry will become more efficient. The BJP seems to have a more libertarian approach on the issues, that to me - is in the best interest of the country. On the other hand, India can have a better stand on other issues if this policy gets implemented.
Siddharth Raina, USA

It is only the liberalisation propaganda of the capitalists. What India needs is to stem out corruption and inefficiency and install in the minds of the Indians to love their country first. When the Indians develop real patriotism and self-reliance and elect really patriotic leaders who will stand for the majority of the poor people and not cater only for the rich and corporate class then India will move towards the real liberalisation. All other steps are bound to fail. As for others who are over enthusiastic, I would say that you are fooling yourselves imagining that you are having level ground to play the liberalisation-game with the rich countries like USA. It is only a strategy for the west to continue and reconfirm their economic domination forever. The gap which exists will always continue until we the Asians take a proactive policy in every sphere based on self-assurance and patriotism and value our own culture and ethos. >


Dr. Kuruvilla, USA Prasad Kothare, India

In order for India to compete in today's global economy, it must open it (economy) up. Global trade, economic and technological forces are too strong for countries to remain in "economic isolation." The next century will unequivocally be dominated by economic competition and one will be left behind if its economy is not open. Global free trade and liberaliztion offers many advantages which include, for one, increased prosperity of its people. More and more countries are waking up to the sheer realization that a global economy dominated by the information infrastructure is going to be one of the winners in this race. India, as well as other closed economies, need to take part. The steps to India's introduction to global economic liberaliztion must be carefully mapped out and taken slowly, so as not to overwhelm and overheat the country's current economic state.
Karim Eskaf, USA

India is a country of over a billion people. Why is the west courting China today? The most important reason being that China has market potential (because of its population). India can do wonders to its economy by opening up its economy. This will also be a boost to the world economy. One thing which the Indians must ensure is that they should have a stable government with stable foreign policies ruling them. Also, they should not start riots and protests for every thing. India has the potential to become a superpower. I hope that they also have the right leadership.
Matthew Parker, UK

The answer is "YES" without any iota of hesitation. The concept of capitalism was created by the old Indian rulers and maharajas. The kings in the past had free enterprise system, collected taxes from business and rich communities and invested the tax money for social causes, literature, and arts. So the capitalism is not an old concept in India, it is about time politicians have realised. Sure it will improve the efficiency and effectiveness of the economy of the country.
Ramarao, USA

India is a great country with the most wonderful culture and traditions, all this is getting eroded because of the unstable government in the country. Before the country opens its doors to the world, it is very important to get the house in order and have a stronger stable government. India must move much faster on all directions. It has been a sleeping giant for a long time due to political instability and internal interest of the rich and the government in power. The economy today is far more volatile then it was few years' back. Now what India needs to do is project an uniformed government and open the doors to move on with the rest of the world.
Jay USA

India's freedom of rights should include freedom of enterprise. The country with a liberal democracy certainly needs a liberal economy.
Ram, Canada

India should open up its economy for the foreigners, but has to be very careful. Majority of the foreign investments are designed to benefit the investor.
Himanshu Shekhar, USA

The country will largely benefit due to the liberalisation policy. Opening up the market will lead to more multinational participation and hence more industries and more employment. More competition means more options for the consumers. Take the insurance for example, at present LIC is the only insurance company and I don't think it does well in any departments except life insurance while there are a lot of other commodities that require insurance coverage and more the insurance firms more the options for the customers to select and better the product. The opening up of the insurance sector is a mile stone in globalisation of Indian economy.
Suresh Ramalingam, USA

What do you think India has been doing for the last 8 or 9 years? Indian economy is now more open than before and it is opening further as she moves along. In a couple of years it will be wide open, it has to. India is a member and signatory of WTO, so India is time bound to open up its economy according to the agreement. Therefore the question 'should India open up its economy?' is redundant.
Mohan Marette, USA & Kerala (India)

The passing of the IRA bill augurs well for the Indian economy. Ignore the leftists, they know nothing better than to oppose anything and everything. One of the main steps towards putting the economy in full gear will be to remove subsidies. Go for it.
Sujayeendar Sachindar, USA

India should open up her economy much, much more. What is she protecting? Inefficiency because it is home-grown? Socialism has failed, and India too should break free from its bankrupt shackles. After all, if a communist monolith like China recognises the merits of opening up the economy, why can't India? Sure, opening up the economy will bring problems, but it pales in comparison to what the economy faces. It's time the politicians learnt that they are competing with the rest of the world to attract investment capital. India has a lot going for it -- an educated workforce, decent laws and fairly open accounting standards. Only the socialistic Fabian-minded mindset foisted by the Nehru clan has set her backward. And Indians have proved that they can succeed in any place where there are opportunities. It's time to make a clean break from the dogma of the past...
Raghu Desikan, US

By opening up the economy, India will benefit. In today's global economic scenario it is advantageous for any country to remain isolated. There may be short-term problems like increase in unemployment but in the long run there are benefits too. Increasing competition will benefit the consumers, and the quality of the products will be better for less cost. On the other hand there is disadvantage that many of the Indian companies may lose market to foreign competitors. Let us hope it would be temporary. One thing in favour of India is cheaper labour cost. If the foreign companies do business, where they will manufacture most of the goods? I believe, it will be in India only due to the less labour cost. It is also possible, that India would be able to export products in future due to the improvement of quality. Only required caution is one step at a time in this direction.
Surendra, USA

There is strong possibility of giant multinationals swallowing small and medium sector industries including agricultural base. There should be reasonable evidence to support that India's own corporate sectors can play competently with the global giants. The present public sector has to be drastically reduced before global giants can be expected to receive some competition. Trickle down economy can work only if the profits are reinvested in the market being exploited. Would the global players share this view? Is there evidence to suggest their benefits based on exploitation of resources in the developing world? Did S Korea, Singapore and Japan develop their economies by inviting foreign investment or was it by encouraging their own enterprise and competition?
Vinod Dawda, UK

India has vast natural resources and has one of the world's largest trained manpower. The nation is in the process of industrial revolution now. It is time that we allow foreign investment to accelerate this process. A variety of jobs will be created, businesses will flourish and it is the first step towards becoming an economic power. One should also be careful that India retains its great cultural identity amid all this.
Dr.M. Rajendran, England

The undisputed answer is "YES". It is already too late for the government to open up the Indian economy. If there is one thing that needs to be closed, is to close brain drain. Excessively high numbers of brilliant students in the country, who have no feeling of patriotism, leave the country for selfish ends. However, I am confident that the passage of the insurance bill in the L.S. is a sign that the Vajpayee govt is serious about its election promises and that the Congress after 45 years of keeping India closed to competition is now seriously looking towards the welfare of the country.
Pratik Ghosh, India

India needs to open up its economy and allow foreign investment. Competition will improve the quality of the goods and services in India. Indians can compete with anybody in the world. Hopefully the government will allow it to happen.
Shiraz Buhari, USA

Certainly, India should participate in the global economy. This requires that Indian companies be capable of surviving when competing with the best in the world, and not use Indian tax payer's money to subsidise their inefficiencies. It will also benefit the consumers of goods in India. However, note that just participating in global economy does not imply that India will become a rich company, or even have successful companies that generate a lot of local wealth. Indian economy will become wealthy when most, if not all, of the Indian population is able to take advantage of the opportunities opened up by the global economy. This will require investments in education (to all the people, not just to the present "middle" and "upper" classes). It will also require that most of the population have equal opportunities to enrich themselves. This still does not exist. Therefore, just opening the economy will not suffice. Corresponding investments in social services must be made else! India will again fail to capitalise the global economy, and wonder why it cannot solve the problems of social unrest that follow.
Ramana, USA

The people who are opposing the opening of the economy, are the people who want to just sit and eat away the money of the taxpayers.

Srikanth Pradhan, USA

The people who are opposing the opening of the economy, are the people who want to just sit and eat away the money of the taxpayers. The economic policies which was drafted by Nehru and the Left Wing which takes the best advantage of these policies to make people lazy should realise that if the economy is not opened up, there will be no money left with the tax payers to pay for their salaries which they least deserve.
Srikanth Pradhan, USA

As we are on the threshold of entering the new millennium, we should take a moment for introspection, and evaluate out past performance, what we are doing in the present, and what the future holds for us. After more than 50 years of independence, India still is labelled as a "third world" country, where more than half of it's population still lives in abject poverty. The 90s have seen the resurgence of a country that for long had been trapped in the shackles of "protectionism and inward-looking policies." Let us hope that the future is one where an Indian can afford to overcome poverty which has haunted him for more than two centuries, and return to the Golden Ages of peace and prosperity.
Abhijit Nimbalkar, India

India is heading in the right direction with opening its insurance sector. India has a strong middle class with a large pool of skilled manpower. India has nothing to fear from foreign investments. If managed properly and if corruption is reduced India has the potential to become the strongest economy in the world in spite of its internal troubles and its problems with Pakistan.
Gopal Rengasamy, Canada

Compare India with S. Korea. In 1950, S. Korea and India were on a par in terms of economic development, health, social welfare, etc. The free market policies of S Korea have provided employment, export earnings and inward investment - all of which have led to the citizens enjoying much improved living standards.
Take India's command and control economy which Nehru and his cronies engineered. Inadequate funding, poor infrastructure, shoddy quality and bribery simply to get things done! A sure-fire killer of enterprise if ever there was one!
The only decent thing Nehru achieved was to invest in world class academic institutions (just like the Soviet Union). To date, the alumni from these institutions have played a big part in fuelling the industrial and commercial enterprise of Silicon valley.
Isn't it time that India's educated now use their knowledge power to fuel the growth of India as an economic power? The policies of the present government are a step in the right direction!
Jay, England

One of the main ingredients for economic growth in the modern age is inward investment. People should not fear foreign companies investing in India, this is the one thing we need.
Ali, India

India has industrialised herself and trained very large numbers of skilled workers and engineers, etc. Now, in this time of the IT revolution, it is time for India to capitalise on her advanced development. Surely we cannot expect others to open their markets to us, if we do not reciprocate.
India also has a lot to gain by allowing competition in her economy - including benefits to consumers as well as use of better and more efficient technologies. Yes, I think India must open to the rest of the world.
Hitesh, India