Reimagining Economic Reforms and Entrepreneurship

The text reflects on the 35th anniversary of India's 1991 economic reforms, highlighting their significant yet incomplete nature. While there was substantial progress, such as a 45-fold increase in vehicle ownership and significant growth in Provident Fund contributions and foreign exchange reserves, challenges remain as a substantial portion of the labor force is still entrenched in agriculture.

Comparative Analysis with China

• In 1991, India's per-capita GDP was on par with China's, but now China's is five times higher.
• This disparity is attributed to ideological barriers hindering entrepreneurship, compared to China's pragmatic approach.

The Impact of Ideology and Economic Thinking

Ideological beliefs have created a zero-sum economic mindset, limiting entrepreneurship and job creation. This perspective is outdated and harmful, as demonstrated by global GDP growth and improved living conditions over the past two centuries.

Five Necessary Revisions in Entrepreneurial Thinking

• Wealth Creation: "To get rich is glorious" emphasizes the importance of wealth creation for poverty alleviation.
• Inequality Acceptance: "Some people will get rich before others" suggests that wealth distribution is a natural outcome rather than a problem.
• Pragmatic Policy: "Cross the river by feeling the stones" advocates for experimentation and pragmatic policymaking.
• Practicality over Ideology: "Don’t care if a cat is black or white if it catches mice" supports pragmatic over ideological decision-making.
• Accepting Imperfections: "When you open the window, some flies will always get in" acknowledges that occasional failures should not undermine the benefits of entrepreneurship.

Global Context and Future Prospects

The text warns against the current shifts in China and the US that threaten the prosperity principles established by Deng Xiaoping and the American economic model. Economists predict that either country’s economic missteps could have global implications, potentially impacting $35 trillion in wealth. India's response should focus on strengthening domestic economic and technical entrepreneurship.

India's Reform Agenda for 2026

• Deregulation: Implementing measures to simplify licensing and regulatory processes.
• Decriminalisation: Adjusting commercial deterrents for a more conducive business environment.
• Digitisation: Promoting a paperless, presence-less, and cashless government interface.
• Decentralisation: Delegating authority and resources to local bodies.
• Democracy: Setting boundaries for administrative powers to enhance accountability.

The text concludes by underlining the necessity for a revised approach to entrepreneurship as a foundation for India's future economic narrative.