Lateral Entry: A Catalyst For Transformative Reforms

While the seeds of this massive revolution that changed the face of India was sown in the early 2000s driven by the concept of unique identity which was alien to Indians at that time, it morphed into a massive revolution through the “Jan Dhan, Aadhar, Mobile (JAM) Trinity” something that went on to become India’s identity on the global stage.

It started around 2009 when Nandan Mohanrao Nilekani, who co-founded Infosys, gave up his cushy job to become the first chairman of the Unique Identification Authority of India (UIDAI).  

As UIDAI chairman, Nilekani implemented the Multipurpose National Identity Card or Unique Identity card (UID Card) project in the country to provide a unique identity to every citizen of the country. The JAM trinity, proposed in the Economic Survey 2014-15 came into being on February 28, 2015. The aim was simple yet bold-- to streamline and increase efficiency of the direct benefit transfers (DBT) by linking bank accounts (Jan Dhan), biometric identity driven Aadhar and mobile telephony.  The move helped in boosting financial inclusion across the country while plugging loopholes.

The JAM trinity, hailed as a game changer, provided the very basis of the country’s digital public infrastructure supported by the Unified Payments Interface (UPI), an experiment that several other countries tried to adopt.

The primary architects of this massive revolution – Nilekani along with former Chief Economic Adviser Arvind Subramanian and ex Reserve Bank of India Governor Raghuram Rajan however were outsiders and not part of the so- called power corridor.

Interestingly, a throwback to the economic growth journey of the country highlights that the key economic revolutions that have shaped India’s growth trajectory over the decades were driven by individuals, who joined the government through lateral entry. They were not from the bureaucracy, popularly known as 'Steel-Frame of India’’.

Besides the digital transformation driven by Aadhar identity, white, green, telecom & IT and missile revolutions catapulted India in the league of powerful nations at the global stage—all driven by people who were outside the famous Steel Frame of India.

1965: Green Revolution

Food shortage was acute hitting millions of citizens. It was then Prime Minister Lal Bahadur Shahtri, who gave a clarion call– Jai Jawan Jai Kisan – which turned into rallying cry among the farmers in a pre-dominantly agrarian India. Shastri roped in agriculture geneticist MS Swaminathan. Swaminathan was given a mandate: to turn India self-sufficient in food grains.

The rest is history.

Swaminathan, who took over continued serving till 1978, was successful in changing the country’s status from a food-deficient economy to steering India into becoming one of the world’s leading foodgrain producing nations.

This earned Swaminathan the title of being the father of the Green revolution.

His initiatives led to an increase in agricultural production, especially in Haryana, Punjab and Uttar Pradesh. Major milestones, as part of his efforts, were development of high-yield seed varieties of wheat, which were rust-resistant.

White Revolution

While Swaminathan was hailed as the father of the green revolution, it Verghese Kurien who is credited to drive India into becoming the largest milk manufacturer in the world. The milk and dairy cooperative, Amul changed the course of lakhs of Indians, especially women and Kurien went on to earn the title ‘Father of White Revolution in India’ or ‘The Milkman of India’.

Kurien quit his job and started the milk cooperative movement, later rechristened it as Amul from Gujarat’s Anand district.

‘Operation Flood’ was launched in 1970 by him to kick start India’s White Revolution as an experiment. It created a national milk grid in over 700 towns and cities by linking producers across India & reducing seasonal price fluctuations to ensure milk producers get a major share of the income generated from consumers. It also ensured farmers to get fair market prices regularly. The village milk producers were the backbone of ‘Operation Flood’.

Telecom Revolution

Sam Pitroda, a non resident Indian, living in the US, was then roped in the mid 1980s by late Prime Minister Rajiv Gandhi to bring about changes in the fields of computer, information technology and telecom. The two decades that followed sowed the seeds of a communication revolution that later drove India’s IT prowess.

Missile Revolution

India’s missile revolution was brought about by non other than scientist APJ Abdul Kalam, who later went on to become the country’s President.

Kalam, an aeronautical engineer by training and aerospace scientist, played an instrumental role in May 1998 Pokhran-II nuclear tests. His involvement in nuclear power in India earned him the title “Missile Man of India”. He is one of India’s most celebrated scientists and statesmen, was President of India from 2002 to 2007. He significantly advanced rocketry in India’s Defense Research and Development Organization (DRDO) and Indian Space Research Organization (ISRO). Heir to the vision of Professor Vikram Sarabhai, who set India on a course of a socio-economically oriented space programme, Kalam was the man who raised India’s eyes to the stars and took India to join the community of spacefaring nations.

End Of Licence Raj

Former finance secretary and deputy chairman Planning Commission Montek Singh Ahluwalia is another name which will be edged in India’s economic history. Ahluwalia, one of the first Secretaries in the government of India joining the system through lateral entry, is credited to be the principal architect of India’s 1991 economic liberalisation, driving reforms from the mid-1980s to 2014. As a key policymaker, he helped dismantle the much abhorred 'Licence Raj’.  Not just that, he went on to reduce trade barriers while opening the economy to foreign investment, transitioning India toward a high-growth and market-oriented system.

He had authored a crucial internal paper titled “Restructuring India’s Industrial Trade and Fiscal Policies", which came to be known as the “M-document”, providing the blueprint for reforming trade, industrial and fiscal sectors. He advocated for steady, calculated reforms that enabled India to “turn the corner” after the 1991 balance of payments crisis. He was pivotal in removing restrictive import controls, reducing industrial licensing and simplifying financial markets, which he mentioned in his book “Backstage: The Story Behind India’s High Growth Years”.

As India now sets its eyes on achieving the Viksit Bharat status by 2047 amid the geopolitical and geoeconomic volatility, the next revolution could be well driven by the artificial intelligence.

Who would be the next face?