Neoliberal Finance and Economic Gridlock: A Critical Analysis of the Indian Economy

This article scrutinizes the genesis and impacts of neoliberal finance on the Indian economy over the last three decades. While existing studies have examined the effects of economic reforms on various sectors, a holistic understanding of the implications of neoliberal finance remains elusive. Through a comprehensive analytical framework, the present study shows how the contradictions inherent in neoliberal finance exacerbate financial-market instability and economic stagnation. The current economic impasse, characterized by high unemployment, service-led growth, and slower production in agriculture and manufacturing, is symptomatic of a broader crisis within neoliberal finance and of inadequacies in policy measures within this framework. By dissecting pivotal elements such as inflation targeting, interest rates, capital flows, external debt, and the role of the neoliberal state, this study offers insights into the intricate dynamics between neoliberal finance and the Indian economy. Macroeconomic policies, shaped by the imperatives of global finance capital, have pushed a burgeoning working class deeper into poverty. This article contends that the policy options within the neoliberal framework are insufficient to address the current economic situation and achieve equitable economic development. Instead, it argues for a transcendence from neoliberal settings to pursue a more equitable and sustainable development path.