Introduction
Once hailed as a land of diverse cultures, economic potential, and a model for peaceful coexistence, India is now facing a perilous ideological shift. The rise of Hindutva, an ideology that seeks to impose a singular religious identity on a pluralistic society, is not just a threat to India’s secular fabric but also to its economic prosperity.
The foundation of a free and prosperous society is its commitment to individual liberty and the protection of minority rights. With its constitutional commitment to secularism, India was once a beacon of these values. However, the rise of Hindutva, driven by a nationalist agenda, has begun to erode these principles. The imposition of a monolithic Hindu identity threatens the very essence of India’s pluralism, alienating and marginalizing religious minorities.
The stark difference can be observed in the treatment of minorities in my state of Kerala vs the bastion of Hindutva fascism in Gujarat. In my state, the concept of secularism is ingrained within us. Despite following a socialist model, there is significant hope that Kerala too, can become a powerhouse by adopting capitalism with secularism as the base. On the other hand, Gujarat has one of the highest rates of inequality and discrimination in the country, despite being one of the ‘top’ states in GDP metrics. In the long term, despite being capitalist, the non-secular nature is slowly destroying and decaying the state of Gujarat
The Constitution of India emphasizes the importance of a society based on voluntary cooperation and peaceful exchange. Hindutva’s drive to create a homogenous society through coercion contradicts these ideals. By alienating significant portions of the population, Hindutva is not only creating social strife but also weakening the moral fabric necessary for a free society.
The Economic Consequences of Hindutva
Austrian Economics teaches us that a free market, driven by voluntary exchanges and entrepreneurship, is the key to economic prosperity. However, the rise of Hindutva is leading to policy decisions that prioritize religious and nationalist objectives over sound economic principles. The increasing influence of Hindutva on economic policy is leading to protectionism, cronyism, and the erosion of property rights—developments that are detrimental to India’s long-term economic growth.
Moreover, Hindutva’s push for cultural nationalism is diverting attention from critical economic issues. The focus on religious identity and nationalist rhetoric is distracting policymakers from addressing India’s real economic challenges, such as unemployment, inflation, and regulatory overreach. The result is a slowing economy, reduced foreign investment, and a deteriorating business environment.
Hindutva’s Assault on Intellectual Freedom
A free society thrives on the exchange of ideas and the open debate of policies. However, Hindutva’s rise has led to increasing censorship, intimidation, and the stifling of intellectual freedom. Academics, journalists, and economists who challenge the government’s narrative are facing growing repression, reminiscent of the dangers Mises warned about in societies that suppress dissent.
This assault on intellectual freedom is not just a moral issue; it has significant economic implications. Innovation and entrepreneurship flourish in environments where free thought and expression are encouraged. By creating a climate of fear, Hindutva is stifling the very creativity and dynamism that are essential for economic progress. As Rothbard argued, the suppression of dissent leads to stagnation and decline, as the best and brightest are either silenced or driven to leave.
The Global Impact on India’s Image
India’s global reputation as a secular democracy and a land of economic opportunity is increasingly at risk due to the rise of Hindutva. International investors and global markets are becoming wary of India’s trajectory, concerned that religious nationalism is taking precedence over economic rationality. The principles of Austrian Economics emphasize the importance of international trade and cooperation, which require a stable and predictable business environment. Hindutva’s rise is creating uncertainty, leading to capital flight and a decline in foreign investment.
The damage to India’s global standing is not just economic. The erosion of India’s secular identity under Hindutva is drawing comparisons to authoritarian regimes that suppress minorities and curtail freedoms. This shift is undermining India’s soft power, reducing its influence on the global stage, and alienating potential allies.
