Towards a Political Economy of the Economic Policy Changes Vinod Vyasulu Sukhpal Singh D Rajasekhar Pooja Kaushik A Indira This paper, by analysing the performance of the commodity producing sectors of the Indian economy and the nature of the crisis facing it, argues that there is only a fiscal crisis of the government of India, and not a crisis of the nation. The authors then situate the recent economic policy changes in a broader context. They argue that the policies are contradictory in nature and are unlikely to result in the desired and anticipated changes in the economy. While the impact of these policies in the long run is not very clear, they are certain to adversely affect the poorer classes, both in rural and urban areas, in the short run. In an unequal society the question of who tightens the belt is crucial.
