Friday, April 17, 2015

Crosswinds of Crony Capitalism

The NDA government came into power on the platform of defeating corrupt practices of the then incumbent UPA regime. Indecisive governance, lack of tangible growth and crony capitalism were at the core of NDA’s election campaign. During the slugfest leading to the elections, numerous shady deals in telecom, land acquisition, black money and environmental clearances to projects were highlighted by the challengers. The resultant landslide victory had no precedence in the past three decades; India had a stable single party majority in its parliament. This trust was a translation of effective communication of promises – to abhor and abstain from corrupt practices, effective implementation of government schemes and plans to springboard India into the league of economically advanced nations.

Post elections, people expected precipitous results. Changes in bureaucracy and shedding off a few laws would not suffice the unclogging of numerous years of governance backlogs. Change in style of functioning, few campaigns and almost a year later we have come a full circle. India’s premier has traveled extensively in his efforts to attract foreign funds, friendships, technology and talent; however this would all prove nadir if the very plank on which his government was entrusted the majority would implode due to the burden of his decisions.

During his visit to France, Narendra Modi facilitated and confirmed the order for 36 ‘ready to fly’ Rafale brand of fighter jets. The reason behind the decision has been credited to the 8 squadron deficit the air force faces in case it is encountered by a full frontal attack by India’s northern neighbors. The political connotation is to attract French investments in the defense, technology and manufacturing through the back gates of the defense deal. This is where the plot gets interesting. While the finer points of the agreement are yet to be made public; Rafale which is owned by Dassault Aviation has already signed an agreement of collaboration with the Mukesh Ambani’s Reliance Group. A mere coincidence?


If make in India was the motive behind encouraging the deal; why wasn’t the Swedish manufacturer of fighter jets Gripen considered for the task? After all the company had offered to produce their jets in India completely. Maybe the Swedish defense company was not able to find an ‘A-list’ (Ambani’s or Adani’s) suitor for their proposition to the Indian government. Even though the Defense Minister tried valiantly to digress the topic by raking up the issue of tenders being scrapped even after Dassault was the lowest bidder. The politicization of the issue creates more doubt on what the government is trying to hide behind the noise. While the government tries to justify its decision; whispers have started in the corridors and questions being asked. Only time will tell if the NDA would survive the onslaught of crony capitalism or succumb to the very evil it was elected to fight. 

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