The CHAKRAVYUHA Challenge of the Indian Economy

The Chakravyuha legend from the Mahabharata describes the competency to enter but not exit with
earnestly adverse outcomes. A market economy requires unrestricted entry of new firms, inventions
and engineering so that the forces of competition can guide capital and labour resources to their most
productive and dynamic uses. But it withal requires departure so that resources are coerced or enticed
away from inefficient and unsustainable uses. Since the early 1980s, the Indian economy has made
remarkable progress: industrial licensing has been dismantled, public sector monopolies have been
diluted, some public sector assets have been privatised, foreign direct investment has been
considerably liberalise and swop barriers have been reduced. In a country like India, exit may not
always be desirable. But policy action is needed when the monetary value limpidly outweigh the
welfare. Two caveats are in order. First, fixating on the exit event does not designate that the
challenges of entry have been completely addressed. Second, there are sectors in which exit is not a
first-order issue, for example IT accommodations and e-commerce, evidenced most recently in the
dynamism exhibited in cognation to start-ups in India. The Chakravyuha Challenge is more a feature
of the relatively traditional sectors of the economy but is not restricted to the public sector indeed,
impeded exit in the private sector is becoming a major challenge