The third episode involving globalisation deals with the policy, followed since the mid-eighties, of allowing imports of computers freely and keeping tax rates on them very low. This is an example of technology being freely allowed in and the private sector allowed free play. In this case, the government did not interfere by putting a cap on the size of the company, the number of its employees, the manner in which it chooses to shut down, and the like. The results of this policy are there for all to see. The software industry has continued to boom and has contributed to growth of output, employment and forex earnings.

All this shows that India experimented with globalisation before 1991 as well and it policies were in no way pristine and inward-looking. India took advantage of some opportunities and lost others. It gained in some cases and floundered in others. The point to note, however, is our inability to develop labour-intensive, light manufacturing industries — something that South Korea and China succeeded in doing.

We need to look at our record of globalisation. It helps us in identifying continuities where they exist, or starting afresh where they do not.

The writer is professor and head of department of economics, University of Pune