Lok Sabha polls: Will Congress' renewed love for socialism backfire?

New Delhi: Even as the nation is in the middle of the 2024 Lok Sabha polls frenzy, Congress' rekindled tryst with socialism, promising economy-wide survey and redistribution of wealth and also proposing to levy inheritance tax for wealth redistribution in the nation, is likely to backfire bigtime.

It is believed that the socialistic path, chosen by former Prime Minister Jawaharlal Nehru and followed by his daughter Indira Gandhi, may not be sustainable in today's market-centric globalized world, of which India is an integral part.

Though there has been opposition to this tendency of going back to a socialist-centric economic policy outlook by a section in the grand old party, the coterie led by party leader Rahul Gandhi is understood to be strongly backing the move.

There seems to be confusion within the Congress’ top leadership. Does it want to own up to the liberalization and globalization policies initiated and strengthened under its own Dr Manmohan Singh government or not?

“By trying to re-establish socialistic economic order and not claiming the legacy of Dr Singh the Congress would be doing a great disservice to itself. And the Bharatiya Janata Party will not waste any time in also laying the entire claim of a growing economy and implementation of liberalization policies,” sources pointed out.

The already prevailing confusion in the grand old party’s ranks over its stand on economic issues was further aggravated after Sam Pitroda, chairman of Indian Overseas Congress and a close confidante of Rahul, proposed a redistribution of wealth through levying of inheritance tax, like the one imposed in the United States.

“In America, there is an inheritance tax. If one has $100 million worth of wealth and when he dies he can only transfer probably 45 per cent to his children, 55 per cent is grabbed by the government. That's an interesting law. It says you in your generation, made wealth and you are leaving now, you must leave your wealth for the public, not all of it, half of it, which to me sounds fair,” he said.

“In India, you don't have that. If somebody is worth 10 billion and he dies, his children get 10 billion and the public gets nothing. So these are the kinds of issues people will have to debate and discuss. I don't know what the conclusion would be at the end of the day but when we talk about redistributing wealth, we are talking about new policies and new programs that are in the interest of the people and not in the interest of super-rich only,” Pitroda emphasized.

However, the statement came under immediate and sharp attack by the BJP. “Congress has decided to destroy India. Now, Sam Pitroda advocates a 50% inheritance tax for wealth redistribution. This means 50% of whatever we build, with all our hard work and enterprise, will be taken away. 50%, besides all the tax we pay, which too will go up, if the Congress prevails,” said BJP’s IT Cell chief Amit Malviya.

He launched a twin-pronged attack and added that “Rashid Alvi quotes Dr Manmohan Singh and reiterates that Muslims have the first right on India’s resources… It is clear that Congress will take over our wealth, and small savings and redistribute it among the Muslims. SCs/STs will lose reservation.”

No unanimity in Congress over proposed socialistic moves

There is seemingly no unanimity over the proposed socialistic moves within the grand old party. Several amongst the Congress leadership are not happy over the comments made by Pitroda and pointed out that leaders who do not have any say in grassroots contests should desist from making such statements that may have far-reaching effects on the ongoing Lok Sabha polls.

“The biggest problem with Congress is that the people who can't win a local municipality election and who have no grassroots connection govern its election campaigns and policy discussions,” a senior Congress leader stated.

If the Congress wants to emerge as a serious challenger to the BJP in the ongoing general election process, it needs to find the pulse of the people. Any move that proposes to rock the boat and current business establishments is likely to face opposition from all quarters, making it imperative on the grand old party’s leadership for immediate introspection.