How Nehru led to agrarian distress and what could be the way forward for inclusive growth

Historical backdrop and policy impact: In 1947 when Prime Minister Jawaharlal Nehru took over reins of Independent India, deeply influenced by Marxist-Leninist socialism, he strived to achieve India’s prosperity by creating mammoth public sector enterprises that were engaged in manufacturing steel to running forcibly nationalised airlines. Moreover, other priority areas like primary education, health provisioning, family welfare, and even rural infrastructure provisions that would have made a positive impact in the lives of poor remained unattended due to lack of resources. Theoretical argument of why Nehru’s Capital intensive USSR model of development was catastrophic for India: In 2001 World bank Rural non-farm employment is considered to be particularly important to the landless and small and marginal farmers, leading to the conclusion that the growth of real per capita non-agricultural output can have a significant impact in reducing rural poverty. Hence spending meagre resources available with third world economy, on highly capital intensive activities like heavy industries and infrastructure, Nehru committed a crime against the poor and led them further into agrarian distress. Unless a higher proportion of non-farm labour intensives opportunities in the infrastructure sector are created through government policy, the majority of India will once again miss the inclusive growth story in our progress.