Nehruvian Economics '09 ; Rahul Gandhi's Influence On Economic Policies Will Grow in Upa's Second Term. Here's What It Means to the Economy and Business. Puja Mehra Goes Into the Details.

Summary

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Sure, it seems like a premature question to ask: What is Rahul Gandhi's role in India's economic policy? After all, Rahul hasn't even once spoken on economic policy and hasn't even been a minister. But as the UPA starts its second term, this question acquires some immediacy. Here's an anecdote to prove it: In the second half of 2007, a debate was on within the UPA government and outside on what to do with the NREGS. The scheme was then applicable in only 330 districts. There were mixed reports on its efficacy. Those concerned over inefficiency of public spending former Finance Minister P. Chidambaram amongst them were opposed to expanding the scheme till a better assessment of costs and benefits could be had. Others wanted its immediate extension. Rahul Gandhi met the Prime Minister with a delegation in September 2007 to appeal for implementing the NREGS all over the country. In less than 50 hours, that's exactly what the government did. This was the UPA's biggest item of social spending with far-reaching implications on fiscal management.

Call it intervention of a Youth Congress leader, or a well- meaning submission of a fourth generation Gandhi who was only applying his understanding of development economics that he studied at Cambridge. Whatever may be the reason for Rahul's intervention, the fact that it impacted the future of the NREGS and fortunes of the government's finances demonstrates the influence that he has and can have on economic management. Yet, there is no reason to start imagining his invisible hand in the key economic decisions of the UPA. Not as yet, anyway. A more subtle and sporadic influence is more likely. And that will be guided by practical, on-the-ground considerations than any rigid economic ideology. That's not a bad prospect for an economy reeling from the hangover of an overdose of the Left's ideological interferences. Rahul as an influencer with an open mind and pragmatic approach would be a welcome break.

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Nehruvian Economics '09 ; Rahul Gandhi's Influence On Economic Policies Will Grow in Upa's Second Term. Here's What It Means to the Economy and Business. Puja Mehra Goes Into the Details.

Rahul or RG as he is now called is a patient worker. He doesn't want to spin the same old wheels. For instance, he rarely asked quest...

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