Uma Kapila's Indian Economy: A Book Review and Download Link

indian politics is changing. the nda at one point in the late 1980s talked about india becoming a superpower. the nehruvian state was a tool to facilitate this, but the bjp and the sangh parivar turned on the state in the 1990s, undermining it at several points in its history. as a result of the economic crisis in 1991, the congress party has been on the defensive.

uma kapila indian economy pdf free download

the world of ideas is rather different from that of trade. there is the usual confusion between economics and the social sciences. the pure and simple economic theory of free trade is that, in a world of free trade, goods and services will move from the higher income to the low income country.

now, a country like india has an unusual problem. the case for free trade is that, the idea being that, the higher income country has the technological advantage, and that is where the jobs are. but, india is not a low income country, it is a middle income country. it is the best run of all the middle income countries.

the country is very poor, it is not a low income country. so, what is the justification for free trade in this context? well, the world of ideas is rather different from that of trade. there is the usual confusion between economics and the social sciences. the pure and simple economic theory of free trade is that, in a world of free trade, goods and services will move from the higher income to the low income country.

now, a country like india has an unusual problem. the case for free trade is that, the higher income country has the technological advantage, and that is where the jobs are. but, india is not a low income country, it is a middle income country. it is the best run of all the middle income countries.