Capitalism has guided the world economy to unprecedented prosperity. However, it often encourage short-sightedness and contribute to wide-disparities between the rich and the poor. In this light, would it be correct to believe and adopt capitalism for bringing inclusive growth in India? Discuss (200 words).
Capitalism is a market economy where the decisions pertaining to production and distribution are taken by market factors as demand and supply. There is no role of state. The regulation by private owners is to drive for maximum profit with high efficiency. In such mechanism almost the things are under control with private players and lead an undimentional move of wealth away from the weaker and vulnerable. The capitalism concentrated on industrial growth, high production but the distribution pattern is ignored and is random.
The flaws of capitalism however can’t be denied but capitalism has also proved an effective method of creating wealth and prosperity. Instead of dismissing the capitalism itself it should be implemented with some step to counter its demerits. Opportunities foster by capitalism must reach all the people to ensure the equity and inclusiveness. While capitalism doesn’t concern itself with the social justice, equity state should encourage capitalism in economy to a limited extent and should ensure the distribution of wealth in a decentralized manner. In 1991 crisis Indian state allow capitalism in economy at limited extent, liberalized the rules and hence a rapid economic growth counted.
Hence a clear picture of mixed economy come to floor that suits the Indian trades and market. We cannot ensure that capitalism alone can make Indian society prosperous and equal.