ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Sealing the Victory of the Corporate Sector

Between the end of voting and counting, the Congress-led government took a major decision to permit even more foreign investment in the critical pharmaceutical industry, and during those same days a Reserve Bank of India committee recommended the handover of public sector banks to the private sector.

On 13 May 2014, just a few days before the election results were announced, the Congress-led United Progressive Alliance government – a government that was expected to lose its mandate – went ahead and approved foreign direct investment (FDI) in India’s pharmaceutical industry (BS 2014) by the US firm KKR (Kohlberg Kravis Roberts to recall its original name).

On the next day, five days before a new prime minister designate was elected, the Reserve Bank of India (RBI 2014) published the report of the Nayak Committee on the governance of banks in India, the main thrust of whose recommendations was the privatisation of public sector banks (PSBs). If the recommendations of the Nayak Committee are accepted – and there is every chance of this happening – it will seal the corporatisation of the Indian economy, a process which had commenced under the Narasimha Rao government, with Manmohan Singh as the finance minister. The style of corporatisation will also involve turning the economy inside out, in the sense that the control will vest in the grip of non-resident Indian (NRI) businessmen or non-Indian multinationals.

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