The following booklet titled “Free Enterprise in India- A call for Leadership” was published on November 8, 1961, and was authored by A.D. Shroff. The author beings by emphasizing the importance of Free enterprise in the light of the Third Five-Year Plan. A complete carbon copy of the Soviet planning model, the author asserts that we cannot adopt totalitarian planning while embracing a democratic structure. He highlights the drawbacks of Soviet Planning and elucidates how countries are shifting from such a rigid planning system and allowing for small economic freedoms. India must also, move away from this system which is extremely unsuited for its economic growth. An alternative to the Soviet system, the author proposes the French planning system for India where Government does not use coercion but incentives for economic growth.
The author brings to light the adverse effects on India’s foreign exchange under state corporations and the inefficiency of other state enterprises. He illustrates figures from the Budget report 1961-62, which proves the inefficacy of state-led corporations. Here, importance is given to the corruption and unethical practices of these companies who make profits out of the empty pockets of the consumers. He asserts that the need of the hour is to have private enterprises and democratic societies such as the Right to Private Property, Freedom of the press, etc. What is necessary for economic growth is not a ceiling over private enterprises but a ceiling over political and bureaucratic power. Throughout the article, he supports his arguments by quoting eminent economists and intellectuals whose contradictory opinions have been given no heed by the Government. However, the Government’s ideological compulsions have resulted in whitewashing the country by manipulating the truth. The author illustrates the building of a perquistive society under socialism and its disastrous effects on public morale. Thus, he proposes the importance and the role that private enterprise should play in the economy.
