Political accounting of ties with industrialists can be costly

Rahul Gandhi’s attacks on industrial ties revive Congress’s own capitalist history.

- ALOK MEHTA

In the Bihar Assembly election campaign, Congress leader Rahul Gandhi has been reviving his familiar tune against Prime Minister Narendra Modi's alleged proximity to big industrialists. He has been particularly targeting the Ambani and Adani groups, and indirectly referring to four or five other business houses, accusing the government of extending them the greatest benefits. Perhaps he forgets that Congress's own top leaders, prime ministers, and chief ministers maintained longstanding ties with capitalists. The record of the patronage, licenses, permits, contracts, and tenders granted to major business houses during Congress regimes could prove extremely costly for him if examined closely.

At times, it seems he is trying to draw public support using the rhetoric of the 1960s and 1970s, once used by leftist political parties and trade unions against the Tatas, Birlas, and other industrialists. Yet today, not only India but even communist countries like China and Russia host private and multinational corporations on a massive scale. India’s own economic liberalization began in 1991 under a Congress government led by Prime Minister PV. Narasimha Rao, with Dr. Manmohan Singh as Finance Minister.

The Ambani and Adani groups have grown rapidly over the past thirty years. Rahul Gandhi, perhaps considering himself a youthful crusader, either does not understand India’s political-economic history or is not advised correctly. But not only in Bihar—people across the country are aware of business groups from Birla and Tata to Ambani and Adani. Millions of Indians even own shares in these and other industrial companies, investing their own money. Even if Rahul prefers to overlook this, some facts deserve attention.