The economics of plenty

Rajiv Shastri writes:

• Or we can discard these policies and adopt the “economics of plenty”. This would position us as a nation of 1.2 billion consumers, not 1.2 billion hungry mouths and necessitate a strong currency which increases our purchasing power. Yes, it would increase our current account deficit but, coupled with the right policies, increase demand for the rupee as an asset in itself.
• In our current policy framework, India competes in other markets for a share of their business against players who have set the rules. True progress will lie in changing the rules, in becoming the market others want to compete for. In an environment where major markets are shrinking, or growing at a snail’s pace, India’s emergence as a market will be welcomed by the world. In changing its policies to favour domestic consumption over exports, India will have to change the way it thinks. And the first change will need to be our currency policy.
• India’s future lies in this choice. India will grow regardless, probably faster than most countries in the world. But, in the former we will need other markets to grant us our progress. In the latter, we will drive it ourselves.