New Delhi: External affairs minister S. Jaishankar stated on Sunday that there is a national consensus recognising the failure of the Nehru Development Model. Speaking at the launch of Professor Arvind Panagariya’s book, "The Nehru Development Model," Jaishankar emphasised that India is working to rectify both the outdated domestic development approach and the associated Nehru foreign policy.
Jaishankar explained that the Nehru Development Model, which focused on socialism and heavy industry as a means to counter imperialism, was ill-suited to India’s unique context, unlike its application in the USSR. He noted that this model ingrained specific economic and political narratives across various sectors, including politics, bureaucracy, and education, hindering effective reforms despite ongoing efforts since 2014.
Highlighting the shift towards a more open economy, Jaishankar acknowledged the benefits India has gained from economic liberalisation since 1991. However, he cautioned against excessive openness in today’s environment of "weaponised economics," which demands greater resiliency, reliability, and trust. He advocated for an approach of "openness with caution" and clarified that "Atma nirbharta" (self-reliance) aims to promote independent thinking and national security rather than protectionism.
Professor Panagariya, a staunch advocate of an open economy, was praised by Jaishankar for his contributions to rethinking India’s economic strategies. Jaishankar concluded by stating that overcoming the legacy of the Nehru Development Model remains a significant challenge but is essential for India's future progress.
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