POLICY REFORMS FOR INDIAN ECONOMY

The Indian Economy has been slowing down with a 5-6 percent range, it will need many policy reforms to get a better economy after the pandemic times. As we all know, we are thrown back to the stage where we were some 10 years back, this been said, the difficulty in this world is no longer similar to the conditions of some decades back. So, we have to bring many policy reforms to get ahead of a decade.

Observing the country since his early days as a World Bank economist in the ’70s, he called India’s economic reform policy “inconsistent, not sufficiently positive”, and its three engines — trade, credit and government-spending — “pretty weak”. He said, “We’re going back to what my friend (economist) Raj Krishna called the Hindu rate of growth, which is 3-4 per cent. That will be a catastrophe because that’s a per-capita growth of 2 per cent and then India’s catch-up story would end.”

He cautioned, “India is de-globalising, not back to what it was before but more than the world is; owing to policy choices: increased protection and decreased attention to export competitiveness.”

There are three indicator which are – Long term performance, COVID-19 impact and challenges of all the developed countries ahead. Radical fiscal restructuring, relying on loans, credit, and fiscal policy is what will be constrained in the coming decade.

With the US-China relationship deteriorating, India should “seize opportunity” and “reopen the economy”, become a trade-growth hub, raise international competitiveness, start green revolution, reform education, labour markets and financial sector to be the “fastest-growing economy, at 8-plus per cent, in 20 years”.

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