B.R Ambedkar the Economist

Forgotten, Ambedkar the Economist

Ambedkar’s View of Economy

B.R. Ambedkar was an economist before becoming a politician, but his economic contributions have been largely ignored.

He identified unemployment, underemployment, and low productivity as India's key economic challenges over 100 years ago. Ambedkar believed in investing in agriculture to resolve low-wage employment and productivity issues.

Industrialization Policy

• Advocated for the private sector to lead industrial investments
• Suggested state investments should focus on agriculture.
• Criticized Nehru’s focus on heavy industries, which had low employment absorption.
  • He argued that India's economic stagnation was due to de-industrialization rather than fragmented land holdings.

Monetary and Exchange Rate Policy

• Opposed fixed exchange rates.
• Suggested a slight devaluation of the rupee to boost competitiveness.
• Proposed full currency replacement every ten years to curb black money.

Critique of Freebies

Ambedkar opposed excessive government subsidies and state control over economic resources.

Relevance Today

• Current policies (e.g., GST complexities, focus on revenue maximization) deviate from Ambedkar’s vision of simplicity and equity.
• Highlighted the need for microfinance and financial inclusion to empower marginalized communities.

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