Three and a half decades of neoliberal victory and failure to dismantle the corporate-communal nexus

By Prem Singh 

Over the last three and a half decades, neoliberalism and privatization in India have experienced an unbroken dominance. Today, it can be unequivocally stated that corporations, through neoliberal consensus, govern contemporary India. The Constitution, once the cornerstone of governance, has been reduced to a mere subject of contentious debates. Team Modi has not only embraced privatization but has escalated it into a systematic corporatization. Consequently, the much-touted "New India" (Naya Bharat) has evolved into "Corporate India" (Nigam Bharat).

Before delving deeper into this transformation, it is essential to trace the brief history of neoliberalism in India. The foundation was laid in 1991 by the duo of PV Narasimha Rao and Dr. Manmohan Singh, as Prime Minister and Finance Minister, respectively, under the banner of New Economic Policies. This baton was subsequently handed over to the Vajpayee-Advani duo, who further propelled the corporate-driven agenda. Running adeptly on this path, Sonia Gandhi and Dr. Manmohan Singh maintained the course, giving the illusion to the displaced masses that they too had a place in the emerging corporate India.

The subsequent developments, though recent, are undeniably unpleasant. In a corporate sleight of hand, the same advisors who supported Sonia Gandhi and Dr. Manmohan Singh turned against them and handed the reins to Narendra Modi. Systems like neoliberalism have their own dynamics—they decide when, how, and whom to utilize to perpetuate their agenda. This was evident when the so-called progressive and secular camp of India inadvertently aligned with the neoliberal order.

Some groundwork for this realignment was laid during the 2004 World Social Forum (WSF) in Mumbai. The WSF, initially formed in Brazil in 2001 to oppose global capitalism, eventually became what critics termed an "NGO fair," dominated by entities dependent on the same system they claimed to resist. By 2011, a coalition of such entities led to the "anti-corruption movement" under the banner of India Against Corruption (IAC). This movement marked the decisive triumph of neoliberalism in India, reducing the country—freed from colonial rule through immense sacrifice—to an integral part of the neo-imperialist network.

Interestingly, the progressive camp initially backed "Chhota Modi" (younger Modi) but later found their plans eclipsed by "Bada Modi" (elder Modi). They even propagated the narrative that Dr. Manmohan Singh, a symbol of neoliberal consensus, was corrupt. Their naïve enthusiasm led to aligning with figures who were, ironically, part of the same neoliberal system.

When Narendra Modi took center stage, he made this aberration the new norm. However, the fundamental shift occurred in 1991, when the country’s economy was aligned with global financial institutions and multinational corporations, abandoning the principles of the Constitution and the freedom movement. Modi cemented this shift by making the Constitution, resources, and labor subservient to corporate interests. Simultaneously, to prevent public resistance, he deployed a dual strategy of communal division and populist cash handouts.

The Rashtriya Swayamsevak Sangh (RSS) was a silent but significant player in this transformation. During Vajpayee's era, the RSS harbored reservations about corporate dominance, perhaps as a means to counter its tarnished reputation of supporting colonial powers during the freedom struggle. However, with the advent of absolute power, the RSS embraced neoliberalism wholeheartedly, branding corporate India as its vision of Swadeshi Bharat.

Ironically, the RSS, now a vanguard of neo-imperialist servitude, continues to claim patriotism and cultural pride, while discrediting the values and icons of the freedom movement.

The Turning Point

A pivotal moment in the neoliberal journey came in 2010-11, when two decades of resistance against neoliberalism collapsed, leading to a broad consensus among India’s political and intellectual elite. Post-2010, neoliberalism no longer required a façade; it openly united its secular and communal proponents. The secular camp justified its complicity by claiming to neutralize the communal aspects of neoliberalism, yet it failed to challenge the corporate-communal nexus.

The New Economic Policies of 1991 were touted as “historic” and “crisis-solving.” Dr. Manmohan Singh famously challenged critics to propose an alternative. However, the real question remains unanswered: Who bore the brunt of this economic crisis? It was not the elite but the majority—daily wage earners, small traders, farmers, and artisans—who were pushed deeper into poverty. Meanwhile, the elite flourished, leveraging the system for personal gain.

Post-liberalization, pay commissions widened the wealth gap, enabling the affluent to indulge in consumerist opulence while the marginalized suffered. The neoliberal order systematically created a super-rich class at the expense of the impoverished masses.

The neoliberal project has led to widespread discontent—farmer suicides, unemployment, displacement, and growing communal divides. Yet, its architects and beneficiaries continue to defend it, propagating the myth that inequality fuels economic growth.

India’s independence, sovereignty, and self-reliance could have been preserved through frugality and collective sacrifice. Instead, the country chose the path of subservience, signing away its future to global corporate powers. The neoliberal consensus among political, intellectual, and corporate elites has left little room for alternative voices or resistance.

The battle against neoliberalism must be grounded in the values of India’s freedom movement and the Constitution. However, the failure to sustain resistance and transmit its lessons to future generations reflects a deeper crisis in understanding and accountability. If India is to reclaim its civic identity and constitutional ideals, it must confront and dismantle the corporate-communal nexus that has become its destiny.

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The writer is associated with the socialist movement is a former teacher of Delhi University and a fellow of Indian Institute of Advanced Study, Shimla