Using welfare for political gain is inappropriate

Despite foreign criticism, India’s welfare policies remain essential and socially responsible.

- ALOK MEHTA

Among experts widely respected for their insights on Indian politics and economic policy, Indian-American Ruchir Sharma stands out. His long experience with institutions such as Morgan Stanley, Rockefeller Capital Management, and Breakout Nations, combined with research-based analysis on India’s sociopolitical landscape, has made himan influential commentator. Yet his reaction to the Bihar election results struck meas both inappropriate and disheartening. Sharma suggested that “Chief Minister Nitish Kumar shows no new thinking on economic progress, yet his victory is nota good sign. Inmany large democracies, people vote out governments in anger—but in India, that is not happening.”

He went further, arguing that “getting trapped in prioritising welfare over growth is bad for India.” He calls this the “welfare trap,” where fundamental developmental processes slow down, and government focus narrows to grants, subsidies, and cash transfers.