INDIA

UNBOUND
BY
GURCHARA
N DAS

WHAT OTHERS SAY

A ringside view of the

economic and social
transformation of a
nation..
One of the most
readable and insightful
books to appear on
Indias torturous
economic path
Describes Indias
economic policies
analytically, logically and
vividly.

CONTENTS IN THE
BOOK

Part One:
Our Spring of Hope
( 1942- 1965)
Part Two:
The Lost Generations
( 1966- 1991)
Part Three:
The Rebirth of Dreams
( 1991-1999)

THE PRE
-INDEPENDENCE
STORY

 RICH INDIA
INDIAN GLORY

Columbus went in quest

of riches in India and
discovered America
Indias wealth lured all
Golconda was famous
for its diamonds
Vasco Da Gama was
sent to find India
English came much
later

INDIAN GLORY

India was well developed

in comparison with
Western 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

INDIAN GLORY

India produced worlds best

cotton yarn and textiles
Exports were half of the
output
Controlled a quarter of the
worlds textile trade
Changed dressing habits of
Europeans and replaced
woolen clothes
More than a fifth of the
worlds wealth
Well developed banking
systems
Bills of exchange were
honoured throughout Asia

SO WHAT WENT
WRONG ?

BRITISH RULE IN
INDIA

Britain taxed the Indian

farmer heavily
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

WAS BRITISH RULE

THE ONLY
PROBLEM?

Industrial revolution
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

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

TEAMWORK
DIVIDED WE FALL

CASTE AWAY

CASTE
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

INDIA BECOMES
FREE

STORY POST 1947 TO

1991

FREE INDIA

Inspired by communist
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

Choosing the
wrong path

The six wrongs

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

THE EFFECTS

In 1960, our per capita

income was more than
China, now it is 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
Programs Human
Development Index
Our failure came less from
ideology and more from
poor management

SECOND LIFE.
POST 1991

MEN BEHIND
WHEELS

THE GOLDEN SUMMER

OF 1991

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

NEW MONEY

NEW MONEY

INFOSYS
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

NEW MONEY

ARMEDIA
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

OLD MONEY

OLD MONEY

Owned and managed

by a family as a joint
family
Haveli ki umar saath
saal
The story of
Buddenbrooks
Professionally managed
companies respond
better to challenges
and decision making

A NEW COUNTRY

Our great strength is our

people, weakness is
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

A NEW COUNTRY

Unleash human capital

through education
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

 India is an elephant and

A NEW COUNTRY

has begun to lumber and

move 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

Book review Based

on India
Unbound by
Gurcharan Das

THANK
YOU!