Indian Economic Evolution, Statecraft, and Cultural Epics
Five Characteristics of the Indian Economic Model
The Indian Economic Model is distinct from Western capitalism or socialism. It is society-driven, value-based, and rooted in family and community systems, focusing on harmony between wealth creation and social welfare.
1. Family-Based Economy
- The family forms the foundation of most Indian businesses. Multiple generations contribute to the success of the enterprise.
- It promotes shared responsibility, long-term stability, and trust.
- Example: Reliance Industries and the Aditya Birla Group are major family-run businesses that have thrived across generations.
2. High Level of Savings
- Indian society is traditionally savings-oriented. People save not just in banks but also in gold, land, and through informal means.
- Savings are seen as a moral duty to ensure family security and stability.
- Example: A typical Indian household saves for education, marriage, and emergencies—even among low-income groups.
3. Self-Employment as the Base
- Self-employment and small family businesses form the backbone of India’s economy.
- It promotes independence, skill development, and entrepreneurship rather than dependence on salaried jobs.
- Example: Hero MotoCorp began as a small bicycle repair shop in Ludhiana and grew into a global motorcycle manufacturer.
4. Community-Oriented Structure
Indian economic activities are often rooted in community cooperation and trust. People support each other in trade, social welfare, and education, creating strong social capital.
Example: The Pattinavar fishing community in Tamil Nadu collectively supports members during illness or hardship.
5. Driven by Norms and Values
The Indian economic system emphasizes ethics, fairness, and Dharmic conduct in trade. Ancient texts like the Arthashastra advised merchants to act for public benefit and avoid exploitation.
Example: Traditional traders avoid hoarding goods or creating artificial scarcity to maintain balance and social trust.
India’s Post-Independence Economic Model
Economic Model Adopted by India at the Time of Independence (1947) and Its Flaws
1. Economic Model Adopted
At the time of independence in 1947, India adopted the Socialist Economic Model, inspired by the Soviet Union. This model emphasized centralized planning, government control, and public sector ownership over major industries. The idea was to ensure economic equality, social welfare, and reduction of poverty through state-led development rather than private profit.
Key Features of the Socialist Model
- Government Ownership: Major industries, banks, and resources were owned and operated by the state.
- Central Planning: All production, distribution, and pricing decisions were made by a central planning authority.
- License-Permit Raj: Businesses required licenses and permits for production and expansion.
- Limited Role of Private Sector: Private entrepreneurship was discouraged, and competition was reduced.
- Focus on Social Welfare: Economic planning aimed to bridge the gap between the rich and the poor.
2. Flaws in the Socialist Model
a. Lack of Consumer Choice: The government decided what and how much to produce, ignoring people’s preferences. This led to shortages, poor quality products, and inefficiency.
b. Inefficiency and Bureaucracy: Public sector enterprises became financially inefficient, overstaffed, and dependent on government support. Excessive bureaucracy led to corruption and delays in decision-making.
c. License-Permit Raj: Entrepreneurs had to obtain numerous licenses to start or expand businesses. This system encouraged corruption and favoritism while discouraging innovation.
d. Lack of Innovation and Competition: Since private players were restricted, there was little incentive for efficiency or technological advancement. India fell behind in industrial modernization and productivity.
e. Economic Crisis by the 1990s: Due to inefficiency and poor exports, India faced a severe financial crisis by the early 1990s. The country was on the verge of bankruptcy, with low foreign exchange reserves and high poverty levels.
3. Conclusion
Although the Socialist Model aimed at equality and welfare, it resulted in slow growth, inefficiency, and corruption. Recognizing these flaws, India shifted towards a Mixed Economic Model in 1991 through the Liberalization, Privatization, and Globalization (LPG) reforms.
6. Faith and Relationship-Based System
The Indian economy thrives on trust and personal relationships, not just contracts. Economic exchanges are often guided by mutual respect and reputation.
Example: Village-level networks where community leaders resolve disputes without external intervention.
7. Society-Driven Economy
Local communities build schools, banks, and institutions to support development. Economic growth is driven by social responsibility, not just government policy.
Example: Karur’s textile and banking industries (Karur Vysya Bank, Lakshmi Vilas Bank) were community initiatives.
8. Driven by Norms and Values
Indian economic thought is rooted in Dharma (ethics)—doing business with honesty and public welfare in mind. Ancient texts like the Arthashastra emphasize fair trade and discourage exploitation.
Example: Merchants avoid hoarding or price manipulation to maintain fairness in society.
The Four Main Types of Bhāvas
Meaning of Bhāva
In the Nāṭyaśāstra, Bhāva refers to the emotional state or feeling expressed by a character in a performance, which evokes a similar response in the audience. It is the foundation of all emotions that combine to create Rasa (sentiment or aesthetic experience).
Types of Bhāvas
According to Bharata Muni’s Nāṭyaśāstra, there are four main types of Bhāvas:
- Sthāyī Bhāva: Permanent or dominant emotional states.
- Vibhāva: Determinants or causes that trigger emotions.
- Anubhāva: Consequent physical expressions of emotions.
- Vyabhicārī Bhāva: Transitory or complementary emotional states.
1. Sthāyī Bhāvas (Permanent States)
These are the core emotions present in every human being, which remain dormant until triggered. There are eight Sthāyī Bhāvas:
- Rati – Love
- Hāsya – Mirth or laughter
- Śoka – Grief
- Krodha – Anger
- Utsāha – Energy or courage
- Bhaya – Fear
- Jugupsā – Disgust
- Vismaya – Wonder
2. Vibhāva (Determinant)
These are the stimuli or causes that trigger emotions. For example, watching a romantic scene in a film may trigger Rati (love) in the viewer—the film acts as the Vibhāva.
3. Anubhāva (Consequent)
These are the physical reactions or expressions that follow the awakening of emotion. Example: Trembling, sweating, tears, or a change of voice when someone experiences strong emotions like fear or joy.
4. Vyabhicārī Bhāva (Transitory States)
These are temporary emotions that accompany and support the main emotion (Sthāyī Bhāva). There are 33 Vyabhicārī Bhāvas, such as shame (vrīḍā), excitement (autsukya), anger (amarṣa), doubt (śaṅkā), and sleep (nidrā).
Description of Two Specific Bhāvas
(a) Sthāyī Bhāva – Rati (Love): It is the emotion of affection, attraction, or devotion. When expressed in art, it gives rise to Śṛṅgāra Rasa (the erotic sentiment). Example: Depicting the love between Rādhā and Krishna in dance or drama evokes Rati.
(b) Vyabhicārī Bhāva – Harṣa (Joy or Delight): It is a temporary state of happiness that intensifies or supports the main emotion. Example: A warrior feeling joyful upon winning a battle supports the dominant Vīra Rasa (heroic sentiment).
Kautilya’s Saptanga Theory of the State
Kautilya (Chanakya), in his Arthashastra, explained that a state is like a living organism composed of seven essential elements known as Saptanga (Sapta = seven, Anga = parts). Each element is interdependent and essential for the proper functioning and stability of the state.
1. Swami (The King)
The Swami is the head of the state and is considered the servant of the people. Kautilya emphasized that the king must possess qualities such as intellect, enthusiasm, self-restraint, and righteousness. A ruler’s legitimacy rests on Dharma.
2. Amatya (Ministers)
Amatyas are the king’s advisors and executives who help in administration and policy implementation. They are selected for their wisdom, loyalty, and moral integrity. They correspond to modern-day ministers or bureaucrats.
3. Janapada (Territory and People)
The Janapada represents both the land and its people. A strong state must have fertile land, natural resources, and a content population. People’s welfare was seen as the true strength of the state.
4. Durga (Fortified Capital)
Durga symbolizes the state’s physical protection—forts and fortified cities. A well-planned fort ensures safety during attacks and acts as the administrative and military center of the state.
5. Kosha (Treasury)
The Kosha or treasury forms the economic backbone of the state. Kautilya compared tax collection to a bee collecting nectar—without harming the flower. Economic strength determines political power and stability.
6. Danda (Army, Law, and Order)
Danda represents force, discipline, and justice. It refers to the state’s ability to enforce law and maintain order through an efficient military and judicial system.
7. Mitra (Allies and Diplomacy)
Mitra signifies friendly states or allies. Kautilya advised that no state can exist in isolation; alliances and diplomacy are vital for security and expansion.
Negative Effects of the Socialist Model
The negative effects of the Socialist Model in the Indian context include:
- Slow Economic Growth: Excessive government control and limited scope for private enterprise led to inefficiency.
- Bureaucratic Inefficiency: The “License–Permit–Quota Raj” created a slow bureaucracy, discouraging innovation.
- Low Productivity: Public sector enterprises often lacked accountability, resulting in a wastage of resources.
- Corruption and Red Tapism: Government control over permissions gave rise to favoritism and administrative delays.
- Inequality: Benefits were not evenly distributed; rich politicians and industrialists often gained more than the poor.
- Lack of Competitiveness: Protectionist policies discouraged foreign investment and technological advancement.
- Fiscal Burden: Maintaining loss-making Public Sector Undertakings (PSUs) strained government finances.
- Neglect of Agriculture: Focus on heavy industries often sidelined rural development needs.
The Ramayana: Etymology and Characteristics
1. Meaning and Definition of Ramayana
The term Rāmāyaṇa (रामायणम्) is a compound of two Sanskrit words:
- Rāma: The name of the main figure, the prince of Ayodhya and the seventh avatar of Vishnu. It means “pleasing” or “charming”.
- Ayana: Meaning “going”, “moving”, or “journey”.
The literal meaning of Ramayana is “Rama’s Journey” or “The Path of Shri Ram”. It recounts the life of Prince Rama, his exile, and his quest to rescue Sita.
2. Key Characteristics and Structure
Authorship and Classification: The Ramayana is attributed to Maharishi Valmiki, the ‘Adikavi’ (first poet). The epic is called the ‘Adikavya’ (the first poem). It belongs to the genre of Itihasa and is classified as a ‘Mahakavya’ (great epic) or ‘Arsha Kavya’.
Structure and Composition: The epic consists of approximately 24,000 shlokas (verses). It is known as the “Chaturvinshati-sahasri Samhita”. The verses are divided into seven kāṇḍas (books).
Embodiment of Dharma: The central theme is the exploration of Dharma (righteousness). Lord Rama is regarded as the ideal embodiment of duty, representing the perfect son, husband, and king.
Ideal Relationships: The epic portrays ideal standards for relationships, including Sita as the symbol of virtue, Lakshmana and Bharata as loyal brothers, and Hanuman as the ultimate devotee.
Triumph of Good over Evil: The Ramayana illustrates the triumph of virtue over vice through the defeat of the demon king Ravana.
3. Unique Symbolic Facts and Cultural Influence
Gayatri Mantra Connection: It is believed that the first letter taken after every 1,000th shloka forms the Gayatri Mantra.
Rishi and Krishi Parampara: The story symbolizes the meeting of the ‘Rishi Parampara’ (ascetic tradition) through Rama and the ‘Krishi Parampara’ (agricultural tradition) through Sita, who is Bhumija (daughter of the earth).
Cultural Influence: The Ramayana has shaped Hindu life, literature, and art. It has been adapted into regional versions like the Ramavataram (Tamil) and Ramacharitmanas (Awadhi), and remains a living tradition across Southeast Asia in countries like Thailand (Ramakien) and Indonesia.