When economists criticise a particular economic policy measure, they generally do so on the implicit assumption that the rulers could have acted differently. But unless their criticism is minor, this assumption is questionable. While some ‘tweaking’ is always possible within a given policy-frame, are rulers really free to change their economic policies drastically, i.e., change the policy-frame? And if they are not, what is the point of criticism?

The Indian authorities are putting the finishing touches on a financial regime that will perpetuate an unprecedented level of control of India’s economic policy by foreign investors. The simple mechanism through which this regime is to be instituted is large-scale foreign investment in Indian government bonds.

India’s private corporate sector is more prominent today than at any time in the past. Its chieftains are listed among the richest persons in the world. The Indian government’s growth plans now explicitly centre on the country’s largest firms, with the aim of creating...